US EditionWRAP | Finance Minister says DA has 'compromised Treasury' by calling the budget an 'ANC budget'
- The government will increase value-added tax by 0.5 percentage points starting May 1, 2025, due to spending pressures in health, education, transport, and security, according to Finance Minister Enoch Godongwana.
- Measures will be implemented to protect vulnerable households, including social grant increases and expanding VAT zero-rated food items.
- The proposed VAT increase has faced opposition from the Democratic Alliance and other parties, with the DA predicting that the ANC will not secure a majority to pass the Budget.
- Organizations such as the South African Communist Party claim that VAT increases disproportionately affect workers and the poor.
35 Articles
35 Articles
WRAP | Finance Minister says DA has 'compromised Treasury' by calling the budget an 'ANC budget'
A day after delivering the budget, Finance Minister Enoch Godongwana was joined by SARS head Edward Kieswetter to discuss what comes next amid tensions within the GNU over a proposed hike in value-added tax
South Africa: Government Proposes VAT Increase Over Two Years
[SAnews.gov.za] In light of new and persistent spending pressures in health, education, transport and security, government has decided to raise value-added tax (VAT) by 0.5 percentage points in each of the next two years, which will bring VAT to 16% in the 2026/27 financial year.
Watauga Democrat
S.Africa revised budget gets booed despite smaller tax hike
South Africa's finance minister unveiled Wednesday a budget with a smaller increase in value-added tax than previously proposed, but it was immediately rejected by a key party in the unity government.
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