South Africa-VAT rate increase
The South African finance minister has recently announced an increase of 1 percentage point in the value-added tax (VAT) rate in the 2018 budget. As a result, the rate will raise to 15% in the first adjustment to taxation on goods and services under the ANC government.
The change represents the first VAT increase in 25 years,and is effective from 1 April 2018. The move is designed to raise public finances in the current difficult economic conditions.
In addition, excise duty on luxury goods will increase from 7% to 9%.