WATCH | Ramaphosa speaks on VAT: key insights and developments

Cape Town – President Cyril Ramaphosa says that the National Treasury will consider alternative revenue-generating proposals in response to the delayed VAT increase.

The Treasury has been given a 30-day period to explore options before submitting a detailed report for review.

Talking to journalists on Sunday, Ramaphosa explained the decision, saying, “The resolution that was taken by the finance committee was that there will be a 30-day period during which Treasury will examine whether there are other options other than through VAT increase where we can fill the gap of about R13.5 billion. So that has been left for discussion and examination, and in the end, we will look at all ways and means of seeing whether that is possible or not.”

National Treasury is expected to look at alternative revenue proposals to the VAT increase within 30 days and thereafter present a report. pic.twitter.com/K2oRFgeLdT

— Cyril Ramaphosa 🇿🇦 (@CyrilRamaphosa) April 6, 2025

The VAT increase had been part of broader fiscal reforms aimed at addressing the country’s budgetary shortfalls. However, with the rising economic pressure on South African households, the government opted to delay the increase and explore other avenues for generating revenue.

Ramaphosa emphasised that the proposal from various stakeholders would be taken seriously and that the 30-day examination would be thoroughly engaged with.

From the current examination, Treasury has indicated that while several areas have been considered, the option of filling the fiscal gap through means other than VAT appears unlikely. Despite this, the process of evaluating alternatives will continue, with a report to be presented after the 30-day period.

Ramaphosa sa, “From the current examination, Treasury has said; having looked at various areas where they can look, that it doesn’t seem to be so. However, the proposal from various is being taken very seriously, and that process will be engaged in for the next 30 days. It is only thereafter that the report will be available, and we will be able to take the matter forward.”

The public will be watching closely as National Treasury evaluates possible alternatives, with key stakeholders pushing for solutions that do not burden the most vulnerable.