There’s union and political resistance to increasing Value Added Tax (VAT) above the current 14 percent, especially in an election year.
But Gordhan has to be careful any increases don’t further stifle the economy, setting the stage for what will be a difficult balancing act when he takes to the podium in Parliament this afternoon.
Gordhan is looking for extra billions, not millions and that means hiking taxes and deep cuts in spending.
Taxing the rich might seem to be the answer, but Investec’s Nazeera Moola says it won’t go far.
