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Could we still see a hike in VAT when the budget is tabled?

South Africans may still face an increase in VAT when the revised budget is tabled in March unless the government's proposed spending plans are revised.
The article from News24 discusses the possibility of a Value-Added Tax (VAT) hike in South Africa as the government prepares to table the budget. Finance Minister Enoch Godongwana has hinted at the need for increased revenue to manage the country's fiscal challenges, including a ballooning public sector wage bill and rising debt-service costs. Despite previous assurances that VAT would not be increased, economic analysts suggest that a VAT hike could be on the table due to the urgent need for revenue. The article mentions that while a VAT increase would be unpopular, especially given the current economic strain on citizens, it might be considered as a last resort to avoid further cuts in public services or to prevent a fiscal crisis. The final decision will be revealed when the budget is presented, with experts divided on whether the government will opt for this measure or seek other means to address the fiscal deficit.

Read the Full News24 Article at:
https://www.news24.com/fin24/economy/could-we-still-see-a-hike-in-vat-when-the-budget-is-tabled-20250308