No #AprilFoolsJoke: VAT increases to 15% from tomorrow!
To limit the impact on poor households, the current zero-rating on basic foodstuffs such as maize meal, brown bread and rice will remain in place.
VAT increased from 14% to 15%
Government will raise the lion’s share of the R36 billion in additional taxes in 2018-19 through a one percentage point hike in the VAT rate.
This is expected to contribute roughly R23 billion to the fiscus.
To limit the impact on poor households, the current zero-rating on basic foodstuffs such as maize meal, brown bread and rice will remain in place.
Read: Consumers cautioned ahead of VAT, fuel levy increases
Vulnerable households will also be compensated through an above-average increase in social grants, while some relief will be provided for lower-income individuals through an increase in the bottom three personal income tax brackets and the rebates.
The increase will take effect from April 1, 2018.
Source: The Citizen
