Market News
South African businesses on edge as VAT hike looms - REUTERS
By Kopano Gumbi and Sisipho Skweyiya
JOHANNESBURG, April 14 (Reuters) - For South African beverage company owner, Ndumiso Madlala, the impending value-added tax hike could spell trouble for his small-scale business that makes alcoholic ginger beer and non-alcoholic drinks.
The National Treasury plans to raise VAT by 1-percentage-point over two years from May 1, as part of measures to bolster government revenue. Currently, VAT is set at 15%
For Madlala, the increase could force him to raise prices or lower margins, both undesirable options for a business like his in a tough economic environment.
