vat Archives - Voice of the Cape

Customers are urged to confirm that the VAT rate they are being charged is accurate

Consumers are urged to check that they are being charged the correct Value-Added Tax (VAT) rate of 15%, and not the previously enforced 15.5%. The Minister of Finance has reversed the decision to increase VAT by the proposed 0.5%. Government Communication and Information System (GCIS) spokesperson, Kgomotso Ranoto, said vendors are expected to charge VAT at the rate of 15% for all relevant goods and services, in line with the […]

30 April 2025

Local

Economists says leaving VAT unchanged, has no significant impact on the financial state of the economy

The Minister of Finance Enoch Godongwana has announced that a Value Added Tax (VAT) increase of 0.5 percentage points has been revoked. Godongwana made the announcement following careful evaluation of the parliamentary committees' recommendations and lengthy discussions with political parties. Economist Dawie Roodt said the decision to leave VAT unchanged, has no significant impact on the financial state of the economy. “The country is in very deep trouble, and we […]

24 April 2025

Local

Economists Raise Concerns Over VAT Hike Amid Court Challenge

Economists have raised concerns about the sustainability of the 0.5% VAT increase set to take effect at the beginning of May. Finance Minister Enoch Godongwana announced the hike as part of the revised fiscal framework, but the move has triggered significant political and public backlash. This week, the DA and the EFF appeared in the Western Cape High Court to challenge the decision. The court has since reserved judgment. Judge […]

23 April 2025

Local

Court to Hear Urgent Challenge to VAT Hike

Recent reports indicate that the Western Cape High Court hear an urgent application from the Democratic Alliance (DA) and Economic Freedom Fighters (EFF) seeking to halt the pending VAT increase. The application challenges the legality of the VAT hike announced in March as part of the revised fiscal framework. The legal challenge comes amid growing tension between the DA and the ruling African National Congress (ANC), following what opposition parties […]

22 April 2025

Local

Economist says VAT should no longer be raised

With the South African Revenue Service (SARS) collecting nearly R10 billion more than expected, economist Dawie Roodt believes a 0.5 percentage point increase in value-added tax (VAT) is unnecessary. The proposed VAT hike is expected to be a key point of contention in Wednesday’s parliamentary vote on Finance Minister Enoch Godongwana's national budget. Roodt highlighted SARS’s recent success in ensuring greater compliance among personal income taxpayers. “Unfortunately, we have a […]

2 April 2025

Cape Town

Finance Minister Enoch Godongwana announces a 0.5% increase in value-added tax (VAT) this year

By Kouthar Sambo Finance Minister Enoch Godongwana announced a 0.5% increase in value-added tax (VAT) this year, with another increase planned for next year during his National Budget Speech on Wednesday, March 12, 2025. This means the VAT rate will rise to 16% by 2026/27. Additionally, personal income tax brackets and rebates will not be adjusted for inflation. Godongwana acknowledged the financial pressures faced by households, including high food and […]

13 March 2025

Local

Black Sash raises concerns over grant increases

The National Budget Speech, delivered on Wednesday by Finance Minister Enoch Godongwana, has faced criticism from various quarters, with many calling it unbalanced. A major point of contention is the National Treasury’s plan to increase value-added tax (VAT) by 0.5 percentage points in the 2025/2026 financial year, followed by another 0.5 percentage point increase in 2026/2027. Speaking on VOC Breakfast on Thursday, Black Sash’s National Advocacy Manager, Hoodah Abrahams-Fayker, expressed […]

13 March 2025

Local

Budget Speech delay sparks political and economic debate

The postponement of the Budget Speech is an unprecedented move in a year of international significance for South Africa, particularly with the upcoming G20 Summit. This delay raises concerns about the political and economic implications for the government. Speaking on VOC’s NewsBeat on Thursday, Professor Patrick Bond, a political economist and sociology professor at the University of Johannesburg, shared his perspective. “I think it was a wise decision for the […]

20 February 2025

Features

Economist warns of potential backlash over proposed tax hike in Budget speech

As the highly anticipated Budget Speech approaches, economists nationwide are closely monitoring the government’s fiscal direction. Independent economist Duma Gqubule shared his concerns, highlighting last-minute tensions within the government. “There is drama right now. Apparently, they just called an urgent cabinet meeting. The ANC wants to increase taxes, and the DA is saying no. I predict that if they don’t cancel it and announce the tax increase, South Africans must […]

19 February 2025

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