Following Minister of Finance Enoch Godongwana’s belated budget speech, the biggest headline is a VAT increase to 15.5%, with a further rise to 16% next financial year.

Questions remain about whether the minister had other options, whether the VAT-exempt product basket has been expanded, and how this hike will impact the cost of living for ordinary South Africans.

Dr Ntokozo Nzimande, Senior Lecturer in the Department of Economics and Econometrics at UJ explains Webpage