MPs get grim message on VAT hikes
Treasury’s efforts to protect the poor are likely to fall short, economists warn
13 April 2025 - 08:21
The parliamentary budget office (PBO) has urged MPs make protecting the poor from the VAT hikes a priority, because the attempts to do so in the budget document might not be sufficient.
PBO head Dumisani Jantjies said while the Treasury had committed to shielding vulnerable households from the two 0.5 percentage point increases, the measures it has announced, such as expanding the zero-rated food basket, may not be enough to mitigate the broader inflationary effects. ..
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