-
South Africa: Finance Minister Suspends VAT Hike
allAfrica, 24 April 2025
Finance Minister Enoch Godongwana scrapped the planned 0.5% Value Added Tax (VAT) increase, which was set to take effect on May 1, keeping the VAT rate at 15%. Read more »
-
South Africa: DA Stops Tax Hike That Would Have Hurt Millions
DA, 24 April 2025
The Democratic Alliance (DA) welcomes Treasury's announcement that it intends to withdraw the planned VAT hike. This is a major victory for the DA and, more importantly, for… Read more »
-
South Africa: Proposed VAT Increase to Be Reversed
SAnews.gov.za, 24 April 2025
National Treasury's proposed 0.5% Value-Added Tax (VAT) increase is expected to be withdrawn when Finance Minister Enoch Godongwana introduces the Rates and Monetary Amounts and… Read more »
-
South Africa: VAT Hikes Can Raise Tax Without Hurting the Poor - an Economist Sets Out the Evidence
The Conversation Africa, 23 April 2025
South Africa's 2025-6 budget has been subjected to more comment than usual. This is due to the political tensions generated by a proposed increase in value added tax (VAT). Read more »
-
South Africa: Deputy President Calls for Transparency, Inclusivity in SA's Budget Process
SAnews.gov.za, 23 April 2025
Deputy President Paul Mashatile has emphasised the importance of collaborative action and transparency in shaping South Africa's fiscal future. Read more »
South Africa Govt Backtracks On VAT Increase, Revises Budget
Finance Minister Enoch Godongwana has scrapped the planned 0.5% Value Added Tax (VAT) increase, which was set to take effect on May 1, keeping the VAT rate at 15%.
This followed extensive consultations with political parties and careful consideration of parliamentary committee recommendations. However, the National Treasury said that the withdrawal would result in a projected revenue shortfall of around R75 billion over the medium term.
The decision not to increase VAT means that the measures to cushion lower income households against the potential negative impact of the rate increase now need to be withdrawn and other expenditure decisions revisited.
South Africa's Budget presentation to Parliament was postponed for the first time in February due to internal disagreements.
InFocus
-
Finance Minister Enoch Godongwana has presented his 2025 Budget to Parliament after Cabinet ministers held a special meeting to discuss it for a second time after they ... Read more »
-
The unprecedented postponement of the tabling of South Africa's 2025 budget because of Read more »
-
In an unprecedented move, the 2025 Budget Speech has been rescheduled for March 12, after initially being postponed due to disagreements within the Government of National Uni Read more »
-
The Cabinet has completed its input into the 2025 Budget, which will be presented to MPs by Finance Minister Enoch Godongwana. Ministers held a special meeting to d Read more »
