First Take SA

ANC on the 1% VAT increase and its implementation


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The ANC says the VAT increase will be offset by higher social grants and an expanded list of zero-rated essential foods to shield lower-income households. Finance Minister Enoch Godongwana yesterday tabled the revised 2025/2026 budget after the initial proposal was rejected due to its suggested 16% VAT hike. The new VAT increase will be implemented in two phases: 0.5% from May 1, 2025, and another 0.5% from April 1, 2026. But the VAT increase has been met with fierce opposition from political parties and ordinary South Africans. Elvis Presslin spoke to ANC Chief Whip, Mdumiseni Ntuli

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