#Budget2018 VAT increased to 15%
According to Finance Minister, Malusi Gigaba, Value Added Tax has not been changed since 1993
POLOKWANE – In a move that many financial experts were expecting, National Treasury has increased Value Added Tax (VAT) to 15% from 14%.
#Gigaba: The main tax proposals for the 2018 Budget are:
An increase in the value-added tax rate from 14 per cent to 15 per cent #Budget2018— Parliament of RSA (@ParliamentofRSA) February 21, 2018
According to Finance Minister, Malusi Gigaba, the tax proposals for the 2018 Budget are designed to generate an additional R36 billion in tax revenue for 2018/2019.
“We have not adjusted VAT since 1993, and it is low comparred to some our peers. We therefore decided that increasing VAT was unavoidable if we are to maintain the integrity of our public fincances,” he said.
The increase will take effect on 1 April 2018.
Other increases include the fuel levy, which will go up by 52 cents per litre. This will be made up of 22 cents per litre for the general fuel levy and a 30 cents per lite increase in the Road Accident Fund Levy.
#Gigaba: The current zero-rating of basic food items such as maize meal, brown bread, dried beans and rice will limit the impact on the poorest households #Budget2018
— Parliament of RSA (@ParliamentofRSA) February 21, 2018
#Gigaba: Increases in the alcohol and tobacco excise duties of between 6 and 10 per cent #Budget2018
— Parliament of RSA (@ParliamentofRSA) February 21, 2018
Gigaba added that having a sustainable tax base is important to ensure that government has enough revenue to meet its spending needs.
