- ANC likely to abandon proposed VAT increase due to lack of support from other parties
- Government of National Unity passed fiscal framework with a narrow majority in April
- Parliament adopted the 2025 fiscal framework report with a vote of 194 to 182
- Adoption of the report is the first step in implementing the 2025 budget
- Finance Minister confirmed VAT hike remains part of the budget
- VAT rate expected to increase to 15.5 percent in May 2025 and 16 percent in April 2026
- First 0.5 percent hike expected to raise R13.5 billion in revenue
- Reports suggest VAT hike could be scrapped after meetings between ANC and other parties
- Final decision against VAT increase influenced by meeting between ANC and DA
- Senior ANC member stated VAT hike is unpalatable and lacks support in parliament
- Finance minister under pressure to remove VAT increase from the budget
Source: businesstech.co.za
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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