- National Treasury and SARS are close to a solution for the VAT hike issue.
- The VAT increase is set to take effect on 1 May.
- Treasury and SARS plan to adjust revenue collection estimates by R20 billion to R60 billion.
- This adjustment could potentially remove the need for the VAT hike.
- Government processes are slow, so changes won’t be finalized before 1 May.
- The plan is to implement changes two months into the new cycle with rebates.
- The VAT hike will proceed on 1 May as planned.
- Finance Minister Enoch Godongwana’s response to a court case supports the hike.
- The Democratic Alliance is legally challenging the VAT increase.
- The party opposes the Finance Minister’s unilateral power to change VAT.
- The minister stated only an Act of parliament could reverse the VAT hike.
- He insisted there was no alternative to the VAT hike.
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.
