Parliament’s Budget Office NOT in favour of VAT hike

Parliament’s Budget Office NOT in favour of VAT hike

As debates about the 2025 Budget continue, the Parliamentary Budget Office (PBO) and the Financial and Fiscal Commission (FFC) have warned that increasing VAT would disproportionately impact low-income households and is unlikely to generate proportional revenue growth.   They presented their concerns during a joint parliamentary committee meeting on the 2025 national budget earlier this week.   In his budget speech on 12 March, Finance Minister …

VAT hike affects food costs - B2B Central

The government’s phased VAT increase to 16% compounds economic challenges, significantly impacting South African food costs and lower-income households, explains Morne Botes, ccommercial director at Southern Soil. Getty image A VAT increase puts immense pressure on households and small businesses, shaping not only business returns and spending habits, but also longer-term outcomes.  As such, South Africans are set to brace for another challengin…

Nearly three-quarters of participants in a #NDRfragt survey consider current measures to curb inflation to be insufficient. Most respondents support reducing or abolishing VAT on food.