This is how the VAT increase will impact your transport, food and electricity bills

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This is how the VAT increase will impact your transport, food and electricity bills

//business-finance.news-articles.net/content/202 .. t-your-transport-food-and-electricity-bills.html

Published in Business and Finance on Friday, March 14th 2025 at 4:41 GMT by IOL
^{🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source}

The recent VAT increase proposal in South Africa raises concerns about its impact on low-income households, particularly regarding essential goods and services.

The article from MSN discusses the impact of the upcoming Value Added Tax (VAT) increase in South Africa, set to rise from 14% to 15% starting April 1, 2023. This increase will affect various sectors significantly:

Transport: Public transport fares are expected to rise, impacting daily commuters. Fuel prices will also increase, which could lead to higher costs for goods and services due to increased transportation costs.

Food: The price of food items will go up, particularly affecting lower-income households. This could exacerbate food insecurity as basic foodstuffs become more expensive.

Electricity: With the VAT hike, electricity tariffs will also increase, adding to the financial burden on consumers already dealing with load shedding and rising energy costs.

The article highlights that while the government aims to increase revenue through this VAT hike, it will disproportionately affect the poor, potentially leading to a decrease in disposable income and an increase in the cost of living. It also mentions that some essential items might remain zero-rated to mitigate the impact on the most vulnerable populations. However, the overall economic strain on citizens is expected to be significant.

Read the Full IOL Article at:
[ https://www.msn.com/en-za/money/economy/this-is-how-the-vat-increase-will-impact-your-transport-food-and-electricity-bills/ar-AA1ATQhC ]

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This is how the VAT increase will impact your transport, food and electricity bills