NEWS ANALYSIS: It is easier to hike VAT in a nonelection year
The second VAT increase will coincide with the 2026 local government elections
17 March 2025 - 05:00
The decision by the National Treasury to hike VAT by 0.5 percentage points in each of the next two years could have been partly influenced by the upcoming local government elections and the potential impact that the hikes may have on voting patterns.
The proposed VAT hike was a compromise from the initial offering of two percentage points, offset by extending the basket of VAT-exempt basic goods, but it was still widely rejected by the ANC’s largest coalition partner and opposition parties...
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