February 22, 2018 / 8:06 AM / 9 months ago

South Africa's Woolworths unfazed by VAT increase - CEO

JOHANNESBURG, Feb 22 (Reuters) - South African retailer Woolworths Holdings’ chief executive said on Thursday he did not believe a hike in value added tax (VAT) would have a negative impact on consumer spending.

“I believe so because consumer confidence is such a big thing. The whole market will improve as a result of how confidence is coming back and responsibility is returning and corruption is being dealt with,” CEO Ion Moir told Reuters.

South Africa’s new leadership announced on Wednesday it was taking the politically risky step of raising VAT for the first time in 25 years, part of efforts to cut the deficit and stabilise debt under new President Cyril Ramaphosa. (Reporting by Nqobile Dludla)

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