Cape Town - Finance Minister Pravin Gordhan on Wednesday announced that the Square Kilometre Array radio telescope would qualify for VAT relief.
"I am happy to confirm that the project will qualify for VAT relief, which will surely give [Science Minister Naledi] Pandor the winning edge in this contest," he said in his budget speech in the National Assembly.
South Africa and Australia have been short-listed to build the €1.5bn telescope.
The winner will be announced on April 4.