The Treasury has compromised on its proposed two percentage point VAT increase by opting for a half a percentage point hike in each of the next two years.

The DA and other opposition parties have been adamant that they will not accept any VAT increase at all. This was the reason for their rejection of the February 19 budget for 2025/26, which proposed the two percentage point hike. Cosatu and civil society organisations also rejected that budget...

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