South Africa’s ruling party took a political gamble by increasing sales tax ahead of elections next year as new President Cyril Ramaphosa seeks to stabilize debt and prevent a third junk credit rating.
The value-added tax rate will be raised to 15 percent from 14 percent, the first time since the end of apartheid that the government has targeted a charge seen as hitting the poor hardest. Levies on fuel and luxury goods will go up, while planned spending will be cut over the next three years, according to Finance Minister Malusi Gigaba. The rand and government bonds gained. READ MORE
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