Neil Roets, CEO of Debt Rescue, welcomed the withdrawal of the VAT hike, calling it “vital and timely relief” for financially strained South Africans. He said the VAT increase would have pushed many families to breaking point. Roets added that the revised Budget has strengthened SARS’s ability to close the tax gap and improve compliance by targeting corporates, high-net-worth individuals, and others with discrepancies between declared income and financial activity.
He stressed that this decision must be the start of a broader shift in the government’s fiscal approach, urging policymakers to adopt longer-term measures to support consumer resilience. Roets called for reduced wasteful government spending, the expansion of the list of zero-rated VAT items, and for major food retailers to reconsider the pricing of essential goods, as many households can no longer afford basic necessities.
Finance Minister’s decision to withdraw VAT increase brings relief to consumers
Written by Ashley Lechman
