Namibians to Feel Pinch of Proposed 2% VAT Increase in South Africa

 

By: Loise Shiimi

 

Namibian economists warn that a proposed 2% increase in South Africa’s value-added tax (VAT) could have a significant impact on Namibian consumers, as the hike contributes to rising costs of goods and inflation.

South Africa’s Finance Minister, Enoch Godongwana, recently postponed the tabling of the national budget to 12 March 2025 after cabinet ministers failed to agree on various funding mechanisms, including the contentious VAT increase.

The proposed change would raise South Africa’s VAT rate from 15% to 17%, a move that has caused divisions within the country’s coalition government.