South Africa’s finance ministry has canceled the planned VAT increase, initially set for May 1, in response to political opposition. The VAT was slated to rise by one percentage point over two years as proposed in the 2025 budget.
The South African finance ministry has announced that the planned increase in value-added tax (VAT) will not proceed as scheduled for May 1. Initially, the National Treasury intended to raise VAT by one percentage point over a two-year period as part of the 2025 budget. However, opposition from various political parties has led to the withdrawal of this proposal.
In conclusion, South Africa’s finance ministry has decided to retract the previously announced VAT hike due to political opposition. The decision reflects the need for careful consideration of political sentiments when formulating fiscal policies.
Original Source: www.tradingview.com
