‘VAT gaan aan?’ : Nando’s pokes fun at 2% VAT increase fail

Nando’s has made light of government’s failure to implement a 2% VAT increase following the pushback by the Democratic Alliance (DA). This follows the postponement of the Minister of Finance Enoch Godongwana’s budget speech after a last-minute cabinet meeting.

NANDO’S POKES FUN AT FAILED 2% VAT INCREASE

In a cheeky tweet, Nando’s poked fun at authorities’ failure to implement a 2% VAT increase, which was set to be announced in the budget speech.

The hike would have raised the VAT from 15% to 17%, hitting consumers in the pocket. According to reports, the Department of Finance was hoping the increase would yield an extra R50 billion for the period of 2025/2026 to cover the costs of overruns and shortfalls within public sector funding.

The increase would’ve kicked in on 1 April.

However, the proposal was rejected by the DA, who claimed the hike would have potentially “broken the back of our economy.”.

Making light of the government’s failed plans, Nando’s tweeted: “VAT gaan aan?”. It added: “Now that we’ve given our 2 cents, do we have to pay VAT on it?”.

WHEN WILL THE BUDGET SPEECH TAKE PLACE?

According to the Department of Finance, the new date for the budget speech is Wednesday, 12 March.

Minister Enoch Godongwana said of the debate over the 2% VAT increase:  “You can’t just have the 2% alone without discussing what’s going to replace it. What we are grappling with is not necessarily 2% per se. Given the challenges and priorities that we are facing, how do we fund them? That is the debate.”

It’s unclear if the minister will announce a 2% VAT increase in his budget speech or if the proposal will be pushed back indefinitely.

DO YOU THINK CONSUMERS WILL BE ABLE TO AFFORD A 2% VAT INCREASE?

Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.

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