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Economy

SA Revenue Service to proceed with VAT increase despite legal challenge

Date: Apr 4, 2025

The South African Revenue Service (SARS) has confirmed its intention to implement a half-percentage-point increase in Value Added Tax (VAT) starting on May 1.

This isdespite receiving court papers regarding the Democratic Alliance’s plans to interdict the hike.

SARS Commissioner Johnston Makhubu addressed the situation, stating, "As soon as we are able to get direction, we still believe we’re going to implement from May 1. We do acknowledge the implications this would have for traders, whether it concerns pricing or the necessary updates to ERP systems. However, we know that since this announcement, various industry bodies have been engaging with their members to ensure readiness."

--SABC/ChannelAfrica--