VAT Increase: Impact on South African Households and Economy

• The Minister of Finance proposed a VAT rate increase to 17% but it is now likely to be 15.5%
• The VAT rate increase is expected to take effect on June 1, 2025
• The VAT increase could negatively impact economic growth and disproportionately affect lower income households
• The basket of VAT zero-rated foodstuffs is expected to be expanded to include dairy liquid blends, tinned and bottled vegetables, and a variety of meats

Source: ensafrica.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.