South Africa’s fight over VAT raises a key question

South Africa’s fight over VAT raises a key question: who should bear the burden of taxes?
The important question in a democratic setting is who gets to pay taxes and how they connect to the well-being of its citizens.
What a 2% VAT hike would mean for the average consumer in South Africa
For the time being, South Africans can breathe a little easier, as the 2% increase would have a short-term negative impact, particularly because VAT applies to most goods and services, raising their costs and putting additional strain on consumers' wallets, he adds.
South African budget delay over VAT hike shows cracks in coalition
South Africa's national budget was postponed on Wednesday because the two biggest parties in the ruling coalition disagreed over raising value-added tax, an unprecedented delay that caused the rand and government bonds to fall.
South Africa’s finance minister wanted to raise VAT: the pros and cons of a tricky tax
South Africa’s finance minister, Enoch Godongwana, cancelled the unveiling of the country’s 2025 budget as it was due to be released. The move is unprecedented in the country’s history. The reason for the abrupt cancellation was the failure of the minister to get cabinet approval for the proposal to raise value added tax (VAT) from 15% to 17%.
Coalition bust-up over VAT in South Africa?
South Africa’s ruling coalition, made up primarily of the African National Congress and the Democratic Alliance, is showing signs of a possible crack in its government of national unity.
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