The majority of respondents in our latest poll are of the view that South Africa’s proposed 0.5 percentage point increase in value-added tax (VAT) will have a significant impact on tourism and hospitality businesses.
Supporting the sentiments of industry leading associations such as FEDHASA, which has expressed its concern about the effects of the VAT hike, 48% of respondents believe the increase will have a major impact.
Another 35% of respondents said the VAT hike will only have a minor impact while 17% believe there will be no impact.
The proposed 0.5 percentage point hike in each of the 2025/26 and 2027/28 financial years – announced by Finance Minister Enoch Godongwana in his March 12 budget speech – is a bone of contention…
