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[South Africa Revises Budget With Gradual VAT Increase And Spending Cuts] South African Finance Minister Enoch Godongwana Proposed A Revised Budget, Planning To Increase VAT By 0.5 Percentage Points In Each Of The Next Two Fiscal Years, Reaching 16%, A Reduction From The Previously Rejected 2 Percentage-point Increase. This Aims To Generate An Additional 75 Billion Rand Over Three Years, Less Than The Initially Projected 191 Billion Rand. To Cover The Shortfall, The Treasury Plans Spending Cuts, Using Contingency Reserves, And Not Adjusting Tax Brackets For Inflation, While Exempting More Food Items From VAT And Providing Inflation-beating Increases For Welfare Grants, Albeit With A 15.1 Billion Rand Reduction In The Additional Three-year Budget For Stipends.
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