Godongwana said, “The debate surrounding the proposed VAT increase on March 12 was intense and significant, creating some uncertainty. However, we now have clarity: VAT will remain at 15%. This decision demonstrates our commitment to listening to South Africans and all the political parties represented in this House.”

To balance the previously contentious VAT hike, which was withdrawn, income and fuel taxes are expected to rise. Additionally, grant payouts will remain as the previous budget tables, which treasury allocated a R1.6 billion increase towards. Sin tax will also see an increase, however, the sugar tax will stay unchanged.

Darul Ihsan Media Desk