• About
  • RSS News Feeds
Friday, August 8, 2025
  • Home
  • Latest News
  • Politics
  • ENTERTAINMENT
  • Lifestyle
  • Crime
  • SPORTS
  • IREPORT TV
  • RSS News Feeds
No Result
View All Result
  • Home
  • Latest News
  • Politics
  • ENTERTAINMENT
  • Lifestyle
  • Crime
  • SPORTS
  • IREPORT TV
  • RSS News Feeds
No Result
View All Result
No Result
View All Result
Home Latest News

Finance Minister Scraps Planned VAT Increase, Rate to Remain at 15%

April 24, 2025
0
Finance Minister Scraps Planned VAT Increase, Rate to Remain at 15%
0
SHARES
Share on FacebookShare on Twitter

Finance Minister Enoch Godongwana has officially abandoned plans to increase VAT, keeping the rate at 15% following months of public opposition and legal challenges. The announcement came early Thursday morning after midnight, marking the end of a contentious debate over the proposed tax hike.

The Treasury confirmed that Godongwana will introduce legislation to reverse his earlier proposal, which would have raised VAT by 0.5 percentage points starting May 1, followed by another 0.5-point increase in April 2026.

In a statement, the Treasury said the decision followed “extensive consultations with political parties” and consideration of recommendations from parliamentary committees. However, the reversal will leave a significant gap in government revenue, with an estimated R75 billion shortfall over the medium term.

The proposed increase had faced strong public backlash since it was first announced, with critics arguing it would disproportionately affect low-income households. Legal challenges were also mounted against the hike, adding pressure on the government to reconsider.

Godongwana briefed the media on the decision Wednesday at the Imbizo Media Centre in Cape Town, though no further details were provided on how the Treasury plans to address the revenue shortfall. The move signals a significant shift in fiscal policy as the government seeks to balance economic pressures with public sentiment ahead of upcoming elections.

The VAT rate has remained at 15% since a controversial 1 percentage point increase in 2018, which was implemented under then-Finance Minister Malusi Gigaba. This latest reversal spares consumers additional financial strain amid ongoing cost-of-living challenges.

Analysts expect the Treasury to present alternative revenue-raising measures in the coming months to compensate for the lost VAT income. The decision has been welcomed by opposition parties and civil society groups, though some economists warn it may complicate long-term budget stability.

Government officials have yet to comment on whether spending cuts or other tax adjustments will be introduced to offset the R75 billion gap. The Finance Minister is expected to provide further details in upcoming parliamentary discussions.

Previous Post

Political Analyst Prince Mashele Criticizes Deputy President Mashatile Over ANC’s Economic Indifference

Next Post

Zelensky Arrives in South Africa Amid Planned MK Party Protest

iReport SA News

iReport South Africa News is a free to use platform and the views and opinions expressed herein are solely those of the author and do not represent, reflect or express the views of iReport South Africa News. Any/all written content and images displayed are provided by the blogger/author, appear herein as submitted by the blogger/author and are unedited by iReport South Africa News. iReport South Africa News does not consent to nor does it condone the posting of any content that violates the rights (including the copyrights) of any third party, nor content that may malign, inter alia, any religion, ethnic group, organization, gender, company, or individual. iReport South Africa News furthermore does not condone the use of our platform for the purposes encouraging/endorsing hate speech, violation of human rights and/or utterances of a defamatory nature. If the content contained herein violates any of your rights, including those of copyright, and/or violates any the above mentioned factors, you are requested to immediately notify us using via the following email address reports@ireportsouthafrica.co.za and/or report the article using the available reporting functionality built into our Platform.

Related Posts

32-Year-Old Teacher Committed Suicide At The School Premises

September 10, 2024

Bheki Mtolo Highlights Zuma’s KZN Influence Amid Ramaphosa’s Struggles Ahead of 2024 Elections

December 3, 2024

Diplomatic Clash: Kagame Rebukes Ramaphosa Over ‘Militia’ Comment on Rwanda Defence Force

February 5, 2025

Duduzile Zuma Declares “Unbeatable” Stance Amid Ongoing Feud Between Jacob Zuma and Julius Malema

December 2, 2024

MK Party members raise concerns with leadership

October 4, 2024

Malema Sells illegal Cigarettes For Mazzotti And Nigerians Give Him Cocaine” Says Kenny Kunene

September 20, 2024
Next Post

Zelensky Arrives in South Africa Amid Planned MK Party Protest

  • Trending
  • Comments
  • Latest

Bad News for everyone living in South Africa this morning As Nigerian Threaten To Take Over SA

September 11, 2024

Look what Dr Nandipha’s mother spotted doing in court yesterday

September 10, 2024

South Africa is finished|| Look over 100 illegal foreigner were caught bringing into the country

September 10, 2024

Unexpected || Hawks To Arrest ANC Heavyweight Over R680 000 Alleged Money Laundering

September 11, 2024

Big Nuz – Ngeke Wins Ukhozi FM Top 10 Cross Over Song Of The Year 2022 to 2023

0

Watch: Babes Wodumo Performing Ngeke at The Last Dance 2022 | Song of The Year

0

Some people are angry on Babes Wodumo, following how She’s mourning her husband, take a look

0

Enhle Mbali exposed for ‘willing to be in a polygamous marriage’

0

Shivambu Accuses EFF Leadership of Misusing Municipal Funds

August 8, 2025

Mbalula Questions Reasons Behind Afrikaner Group’s Move to the U.S.

August 8, 2025

Malema Under Fire After Rejecting Key Committee Role Despite Earlier Pledge

August 8, 2025

New Video Sparks Debate Over MK Party Leadership and Internal Tensions

August 8, 2025

Recent News

Shivambu Accuses EFF Leadership of Misusing Municipal Funds

August 8, 2025

Mbalula Questions Reasons Behind Afrikaner Group’s Move to the U.S.

August 8, 2025

Malema Under Fire After Rejecting Key Committee Role Despite Earlier Pledge

August 8, 2025

New Video Sparks Debate Over MK Party Leadership and Internal Tensions

August 8, 2025

SA Leading Digital News. All the latest breaking news from across South Africa in one stream.

Advertise with us: info@ireportsouthafrica.co.za

Follow Us

Main Menu

  • Home
  • Latest News
  • Politics
  • ENTERTAINMENT
  • Lifestyle
  • Crime
  • SPORTS
  • IREPORT TV
  • RSS News Feeds

Recent News

Shivambu Accuses EFF Leadership of Misusing Municipal Funds

August 8, 2025

Mbalula Questions Reasons Behind Afrikaner Group’s Move to the U.S.

August 8, 2025

Malema Under Fire After Rejecting Key Committee Role Despite Earlier Pledge

August 8, 2025

New Video Sparks Debate Over MK Party Leadership and Internal Tensions

August 8, 2025
  • About
  • RSS News Feeds

iReport South Africa to Advertise: info@ireportsouthafrica.co.za

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • HOME
  • LATEST NEWS
  • POLITICS
  • ENTERTAINMENT
  • LIFESTYLE
  • CRIME
  • SPORTS
  • BUSINESS
  • IREPORT TV
  • RSS News Feeds
  • Login

iReport South Africa to Advertise: info@ireportsouthafrica.co.za

Exit mobile version

SA Leading Digital News. All the latest breaking news from across South Africa in one stream.

Advertise with us: info@ireportsouthafrica.co.za

Follow Us

Main Menu

  • Home
  • Latest News
  • Politics
  • ENTERTAINMENT
  • Lifestyle
  • Crime
  • SPORTS
  • IREPORT TV
  • RSS News Feeds

Recent News

Shivambu Accuses EFF Leadership of Misusing Municipal Funds

August 8, 2025

Mbalula Questions Reasons Behind Afrikaner Group’s Move to the U.S.

August 8, 2025

Malema Under Fire After Rejecting Key Committee Role Despite Earlier Pledge

August 8, 2025

New Video Sparks Debate Over MK Party Leadership and Internal Tensions

August 8, 2025
  • About
  • RSS News Feeds

iReport South Africa to Advertise: info@ireportsouthafrica.co.za

No Result
View All Result
  • HOME
  • LATEST NEWS
  • POLITICS
  • ENTERTAINMENT
  • LIFESTYLE
  • CRIME
  • SPORTS
  • BUSINESS
  • IREPORT TV
  • RSS News Feeds
  • Login

iReport South Africa to Advertise: info@ireportsouthafrica.co.za

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • HOME
  • LATEST NEWS
  • POLITICS
  • ENTERTAINMENT
  • LIFESTYLE
  • CRIME
  • SPORTS
  • BUSINESS
  • IREPORT TV
  • RSS News Feeds
  • Login

iReport South Africa to Advertise: info@ireportsouthafrica.co.za

Exit mobile version