The South African finance ministry has announced there will be no increase to value-added tax (VAT) slated for May 1, as initially proposed in the 2025 budget. The decision follows pushback from political parties against the planned hike.
On Thursday, the South African finance ministry announced that the country will not proceed with a planned increase in value-added tax (VAT) that was set to take effect on May 1, as outlined in the 2025 budget. The National Treasury had intended to implement a VAT hike of one percentage point over a span of two years. This decision comes in response to opposition from various political parties regarding the proposed tax increase.
The South African finance ministry’s decision to withdraw the proposed VAT hike reflects a sensitivity to political opposition and public sentiment. By not increasing the VAT, the government demonstrates its commitment to addressing concerns raised by various stakeholders while managing fiscal policies strategically.
Original Source: www.tradingview.com
