Increase In Vat Will Over-burden Struggling Households: Economists

Some economists say the increase in Value Added Tax VAT will over-burden already struggling households.

Finance Minister Enoch Godongwana announced a 1 percentage point VAT hike over two years with the first increase of half a percentage point expected in May.

Another increase will be implemented in April next year.

Budget Speech 2025

Independent Economist Ntombi Mbele-Thomo says, National Treasury should have looked at other avenues to raise funds rather than going directly to South African pockets.