
Lydenburg Projects
February 19, 2025 at 06:07 PM
A 2% increase in VAT would mean that for every R100 spent on most goods and services, including electricity, South Africans would have to pay R17 to the state, totaling R117. This increase would disproportionately affect the poor and middle class, who are already struggling to make ends meet.
In addition to VAT, working South Africans are burdened with numerous other taxes, including:
- *Income Tax*: 18%-45%
- *Municipal Rates*
- *Fuel Levy*: R3.96 per liter, plus RAF levy of R2.18 per liter
- *Sin Tax*: Wine (11%), Beer (23%), Spirits (36%)
- *Capital Gains Tax*
- *Transfer Duty* on house purchases
- *Donations Tax*
- *Tax on Retirement Funds*
- *Luxury Tax*: 5.25% on new vehicles over R250,000
These taxes, combined with the proposed VAT increase, would further exacerbate the financial struggles of poor and working-class South Africans. As you mentioned, it's crucial for the government to explore alternative solutions, such as reducing wasteful expenditure, rather than placing an additional burden on its citizens.¹