TREASURY: VAT INCREASE WITHDRAWN

National Treasury has published a Media Statement today stating that the proposed VAT increase will be withdrawn.

The Minister of Finance will soon introduce the Rates and Monetary Amounts and the Amendment of Revenue Laws Bill, which will propose to maintain the VAT rate at 15%, instead of the proposed increase to VAT announced in the Budget Speech.

The decision not to increase VAT means that other expenditure decisions need to be revisited.

The notice can be access with the following link: https://www.treasury.gov.za/comm_media/press/2025/2024042401%20Media%20Statement%20on%20the%20reversal%20of%20the%20vat%20rate%20increase.pdf