South Africa Likely to Keep VAT Rate Stable in 2026 Budget

Summary

South Africa's 2026 budget will likely keep the VAT rate unchanged, following last year’s decision not to increase it after strong political and economic opposition. The VAT, or value-added tax, is an important source of income for the government, helping to fund public services and projects. Although raising VAT could bring in more money, it also makes goods and services more expensive for consumers. The government is choosing to keep the rate steady to avoid putting additional pressure on South African households and businesses, especially as the country faces economic challenges. This decision means no immediate extra charges on everyday purchases, which can help consumers manage their budgets better.