VAT increase to 16% by 2026/2027 to support government spending

VAAL TRIANGLE - Finance minister Enoch Godongwana has announced a plan to increase the VAT rate to 16-percent by 2026/2027. The VAT rate will rise by 0.5% on 1 May, with another 0.5% increase on 1 April next year. In his budget speech, Godongwana said the increase is needed to support government spending on essential services like health, education, transport, and security.