South Africa’s finance ministry announced the withdrawal of a scheduled VAT increase effective May 1, initially planned to raise VAT by one percentage point over two years, following opposition from political parties.
The South African finance ministry has announced that it will not proceed with a planned increase in value-added tax (VAT), which was set to take effect on May 1 as per the 2025 budget. Initially, the National Treasury intended to raise VAT by one percentage point over a two-year period. However, following opposition from various political parties, this proposal has been withdrawn.
In conclusion, the South African government’s decision to retract the VAT hike reflects political pressures and concerns regarding the economic impact. The finance ministry’s announcement signifies a shift in financial policy, aiming to address the reservations raised by opposition parties.
Original Source: www.tradingview.com
