South Africa’s Leader Sees Dim Prospect for VAT-Hike Alternative

South African President Cyril Ramaphosa said the National Treasury is looking at all options to avoid having to raise value-added tax but that the prospects for escaping such an increase are dim.

The Democratic Alliance, the second-biggest party in the country that’s in a 10-member coalition with Ramaphosa’s African National Congress, refused to support a key budget law Wednesday that paves the way for higher VAT come May 1. The ANC was able to pass the proposal after it received backing from parties outside of the government of national unity. The law includes a non-binding recommendation that the Treasury consider ...