JOHANNESBURG- The South African Revenue Service (Sars) have said in the long-term economic gains will benefit South Africans after the VAT increase from 14% to 15% kicked in on the 1st of April.
Consumers are being asked to tighten their belts with the VAT increase expected to affect many South Africans.
This VAT increase is the first in 25 years.
The increase will cause many more consumers to dig deeper into their pockets as taxable goods and services expected to cost 8% more.
National Agricultural Marketing Council said, a basic 28-item food basket will cost consumers over R800. Twelve of these items are not zero rated, meaning they’re subject to VAT.
Finance Minister Nhlanhla Nene said the list of zero rated items should be reviewed, but Sars said the review is only likely to happen in Parliament around July.
Photo Credit- eNCA