South Africa's VAT Increase: What it means for households

Edward West edward.west@inl.co.za

VAT will be raised by 0.5% this year and by 0.5% the year thereafter, but a range of measures have been proposed by the government to alleviate the impact of these increases on lower-income households. The National Treasury had earlier this year proposed a 2% increase from the current 15% VAT rate, but the proposal was shot down by the political parties in the Government of National Unity due to the potentially severe impact on lower-income groups. Consequently, the February Budget was postponed until Wednesday so that other ways could be found to increase government revenues. In addition, the government has decided not to adjust the personal income tax brackets and rebates for inflation in 2025/26, which will see employees paying more tax. Finance Minister Enoch Godongwana said in a…

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Star South Africa (Digital) - 1 Issue, 2025-03-13

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