VAT increase effective from today
Former Finance minister Malusi Gigaba announced in February during his budget speech that Value Added Tax (VAT) will increase by 1% for the first time in 25 years.
The late Winston Churchill who was a British politician, army officer, and writer once said, “For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.”
Gigaba announced that the reason for increase was to raise the budget shortfall and increase revenue. South Africans are concerned by the increase and how it will affect the cost of living on a daily basis.
Some companies informed their clients of the increase and changes in fees in advance:
Thanks, @LibertyGroupSA for arbsorbing the cost of this ill-advised #VATincrease.👌 pic.twitter.com/j517npUm2o
— Sean Jacobs (@SeanJakes) March 26, 2018
https://twitter.com/kaylynvanas/status/972144004174372865
We paying for all the corruption that took place in the Zuma Era…😡 #VATincrease pic.twitter.com/FqKXSakSQA
— Sandile Mdumane Qakaza♜ (@qakaza_sandile) March 23, 2018
This is not an April Fools joke, it is real…
Went to buy food and #VATincrease is real… we gon be right pic.twitter.com/Ve8iYMzxqN
— MYP (@MissPotlako) April 1, 2018
Social media also reacted to the increase:
It's 15% #VAT Day 😢😏😭 pic.twitter.com/JD4w6d2ryu
— XOLI (@Mbhele_Xoli) April 1, 2018
Will #Lobola be affected by the looming #VAT increase?
— Refilwe Mathebula (@RefilweThebu) March 27, 2018
If I signed a contract which stipulates #VAT of 14% over a period of two years, wouldn't the company be legally liable to hold that price until the end of the contract, since no clause was in place to accommodate for #VAT increases? #VATincrease
— Ashveer Singh (@ashveersingh06) March 22, 2018
Telkom data bundles adjustments #VAT pic.twitter.com/nxDC1eNwpi
— SA’s Tourism Specialist (@TshepangLobete) March 31, 2018
https://twitter.com/DWEBA_VEZI/status/979741872615718912
https://twitter.com/realRazorKid/status/980318925656387584
Come 1st April I'm downgrading from Woolies to buying from Jumbo Cash & Carry, organic foods can wait I just need food now, any food, as long as its still at 14% VAT pricing 😭😭 #VatIncrease pic.twitter.com/wqQF9zVIEH
— Sgubhu (@StheSgubhu) March 23, 2018
Spend your money wisely and remember, every cent counts.
