Afrihost warns customers to expect price increases because of VAT hike

Daniel Puchert

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Here come the VAT price hikes

Internet service provider Afrihost has warned customers to expect their product prices to increase on 1 May 2025 as a result of the finance minister increasing VAT from 15% to 15.5%.

“It’s our goal to provide the best products and service in South Africa, and we will continue to strive to bring you the best Internet experience possible,” Afrihost said.
 
It already went up last month and now I just got this email WTF

afri.JPG
 
It hasn't passed the assembly yet. That requires EVERY mp to vote on it... and a majority have indicated that they will vote against it.
 
So retailers et al are passing the buck in advance already?

This is how it feels. It's like, if the VAT increase happens or not happens, we are going to increase our prices anyway because if it is not coming now, it is coming later.

Though this is mostly applicable to the language of those providing electronic services.
 
So if you pay R1000 the vat now is R130.43 incl

Vat increase to 15.5 %

New Total R 1 004.35
 
It hasn't passed the assembly yet. That requires EVERY mp to vote on it... and a majority have indicated that they will vote against it.
it doesn't have to pass for another 12 months, it will still take effect come 1 May
According to South African law—specifically Section 7 of the VAT Act—when the minister announces a VAT rate change in the Budget Speech, it can take effect from the date they specify (in this case, May 1) without needing immediate parliamentary approval
 
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