South Africa Withdraws Planned VAT Hike Ahead of May 1 Implementation

South Africa has decided not to implement a planned increase in VAT that was set to take effect on May 1, according to the finance ministry. The National Treasury’s proposal for a one-percentage-point increase was met with opposition from several political parties.

On Thursday, the South African finance ministry announced that the planned increase in value-added tax (VAT), set to become effective on May 1, will not take place. The proposal, which was included in the 2025 budget, aimed to raise VAT by one percentage point over a two-year period. This decision comes in response to significant opposition from various political parties regarding the planned VAT hike.

The South African finance ministry’s decision to withdraw the planned VAT increase highlights the influence of political opposition on fiscal policy. By maintaining the current VAT rate, the government aims to address concerns regarding the economic impact of such a tax increase.

Original Source: www.tradingview.com