The government originally announced a plan to increase its VAT rate to 15.5% on May 1st and to 16% in 2026. On April 24th the Finance Ministry issued a media statement announcing its intent to cancel the VAT rate.
The National Treasury has also released Government Notice No. 6157 confirming the reversal of the VAT rate increase. As a result of this cancellation the VAT rate in South Africa will remain 15%.
Sources:
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