Economy

SA Revenue Service welcomes court ruling suspending May 1 VAT increase

Date: Apr 28, 2025

The South African Revenue Service (SARS) has welcomed a court order suspending the planned 0.5% Value Added Tax (VAT) increase that was set to take effect on May 1, 2025.

The suspension comes after the Western Cape Province High Court set aside Parliament’s approval of the fiscal framework enabling the hike.  

SARS Commissioner Edward Kieswetter says the ruling provides critical clarity for the administration of the VAT Act and avoids disruption for businesses and consumers.   

“The order allows SARS to administer VAT efficiently while protecting taxpayers,” Kieswetter states 

Emphasising that vendors have “no legal basis” to implement the higher rate. 

SARS will monitor compliance, though Kieswetter expressed confidence in vendors’ ability to adjust swiftly.

--SABC--

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