VAT hike & cost of living pressure: How businesses can boost employee value amid shrinking income.
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GUEST - Lindiwe Sebesho, Managing Director of Remchannel.
The South African government has concluded its 2025 budget deliberations, announcing a VAT increase of 0.5% from May 2025, and a possible further 0.5% hike by April 2026 as part of measures to address the growing budget deficit.
While the country will not face increases in personal income tax or corporate tax rates, both fiscal drag and the VAT hike will still have significant implications for businesses and employees alike.
The South African government has concluded its 2025 budget deliberations, announcing a VAT increase of 0.5% from May 2025, and a possible further 0.5% hike by April 2026 as part of measures to address the growing budget deficit.
While the country will not face increases in personal income tax or corporate tax rates, both fiscal drag and the VAT hike will still have significant implications for businesses and employees alike.