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JUST IN: Minister of Finance Neal Rijkenberg has reversed the decision to increase Value Added Tax (VAT) by 0.5 per cent from May 1, 2025, hardly 24 hours after Members of Parliament in the House of Assembly reluctantly passed the VAT Regulations of 2025, which contained the VAT hike.
Rijkenberg explained that the decision to reverse the VAT spike had been influenced by South Africa’s latest decision to reverse the increase, which was communicated by the Treasury Department on Thursday before midnight.
The VAT rate was scheduled to rise to 15.5 per cent, but growing political and public pressure placed SA Finance Minister Enoch Godongwana under strain to abandon the proposed increase. “We notice that South Africa has reversed the VAT increase, and we will follow suit,” Rijkenberg said.
