Enoch Godongwana announced that the 0.5% that was meant to be implemented on the 1 May 2025 is reversed. The opposition parties that fought for the poor are ultimately adhered to. Godongwana didn't clarify the strategies in place to to reduce the R75 billion deficit that were gonna be raised though raise of VAT increase.
Godongwana further explained their measures in place to increase iteams that will have zero vat items which as sheep, poultry, goats, swine, and bovine animals; specific cuts such as heads, feet, bones, and tongues; dairy liquid blend; and tinned or canned vegetables.
It is reported that the reduction of the items will cost the government 2billion rand on top of the existing debt. What perpetuated the raise of the VAT 0.5% in two consecutive years was the immediate capital that was needed for services delivary in S.A. Enoch furthermore outlined how they anticipate the surplus that will be collected by SARS to be diverted to national treasury.