- South Africa’s government approved the 2025/26 National Budget with a phased VAT increase
- Parliament adopted the 2025 Fiscal Framework and Revenue Proposals after a debate
- The Standing Committee on Finance’s report was approved with 194 votes in favor and 182 against
- VAT will increase by half a percentage point in 2025/26 and another half in 2026/27, reaching 16 percent
- The increase is expected to generate R28bn in 2025/26 and R14.5bn in 2026/27
- Public hearings and submissions were part of the budget approval process
- The Democratic Alliance opposes the budget and plans to challenge it in court
- The VAT increase is set to take effect on 1 May 2025
Source: zawya.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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