VATupdate

Share this post on

Finance Minister Confirms VAT Hike Effective May 1 Amidst Consumer Concerns and Political Challenges

  • Finance Minister Enoch Godogwana confirms VAT increase effective May 1
  • VAT hike deemed necessary to prevent harm to state finances
  • First 0.5 percentage point increase on May 1, 2025, second on April 1, 2026
  • Government considered VAT as an efficient revenue source
  • DA challenges VAT hike legality in court, citing financial impact on citizens
  • DA’s court challenge focuses on Finance Committee procedure and constitutionality
  • VAT increase causes tension within Government of National Unity
  • FW de Klerk Foundation advises DA to stay in the GNU despite disagreements

Source: iol.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.

Sponsors:

VATIT Compliance
Pincvision
VAT news

Advertisements:

  • VATAi