The government should increase the VAT rate by at least 5% to reduce the debt burden in the provincial roads’ maintenance account which is now six times higher than the province’s expenditure.
Reports indicate that the South African roads, which are in a dire state, are now desperately seeking funds since there is was already a backlog of R197bn in 2013 to more than R400bn.
The figures are the logical conclusion that is made by experts and with very bad humour that this problem can be solved by increasing VAT to 19% or 20%, but the problem may escalate if the funds end up in corrupt hands.
-Read the original article in Afrikaans on Vryburger
This report does not necessarily reflects the opinion of SA-news.