Treasury says it aimed to cushion the poor from VAT increase
Proposed budget review called for an increase in VAT to 17% but the list of exempted food items was to be broadened
19 February 2025 - 20:27
The National Treasury said it had sought to cushion SA’s poorest households from the effects of the planned VAT increase by adding new items to its basket of zero-rated foods, including offal and tinned vegetables.
In an unprecedented turn of events in democratic SA, the cabinet failed to sign off on Treasury’s proposed budget on Wednesday due to disagreement over its plans to raise VAT to 17% from 15%. A revised budget is due to be tabled in parliament on March 12...
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