The South African finance ministry has confirmed that there will be no increase in value-added tax (VAT) as previously outlined for May 1, 2025. The planned VAT hike of 1 percentage point over two years has been withdrawn due to political opposition.

The South African finance ministry recently announced the cancellation of its planned increase in value-added tax (VAT), set to take effect on May 1, 2025. The intention had been to implement a VAT hike of one percentage point over a span of two years. However, this proposal faced significant opposition from various political parties, prompting the National Treasury to withdraw the plan.

In conclusion, the South African government has decided against implementing a planned VAT increase following backlash from political factions. This decision reflects the administration’s responsiveness to concerns raised regarding the financial impact of such a tax hike.

Original Source: www.tradingview.com