Discussion | VAT rate increase to 16% in 2026/7

VAT rate increase to 16% in 2026/7 1/6
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JOHANNESBURG - Finance Minister, Enoch Godongwana, has proposed gradually increasing South Africa's VAT rate from 15% to 16% over the next two years.

This move aims to stabilise the country's finances due to rising debt.

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However, there are concerns about how the increase will affect consumers and businesses, and whether any relief for essential goods will be provided.

Gerhard Badenhorst, Tax Director at Cliffe Dekker Hofmeyr remark that the VAT increase won't profound effect on inflation.

" it is relatively small increase this time around, it has only a small impact on in inflation rate impact." he said

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