SALGA proposes zero-VAT-rating on essential items like water and electricity [SOUND]

# The South African Local Government Association has proposed the zero-VAT-rating of essential items like water and electricity. SALGA’s Sabelo Gwala says taxing luxury goods will increase government revenue, suggesting a staggered VAT approach. This comes ahead of Finance minister Enoch Godongwana’s revised budget on 12 March, following disagreements over a potential VAT increase. Gwala warned that a blanket VAT hike would have severe consequences: