Bank Better, Live Better

have you felt the vat increase?

We share some views on the VAT increase as well as practical tips on how to navigate it.

Article Image

Every consumer is in some way affected by the increase in value added tax (VAT) from 14% to 15% since the beginning of April. We decided to find out how much the cost of some items have changed and also, how people feel about it.

Luckily, it’s not all doom and gloom. See our tips below on how you can still #LiveBetter. And in other good news, Capitec has absorbed the VAT increase on the fees for electronic payments on our app, Internet banking and USSD, helping to soften the blow even more.


Your grocery expenses

The cost of groceries increased only marginally if you look at individual items. However, it definitely affects the total cost of your grocery basket. Here’s an example:

Groceries

(14% VAT)

(15% VAT)

Frozen fish (400g)R72.62R73.35
Readymade lasagneR98.50R99.49

Spaghetti (500g)

R25.21R25.46
Frozen chips (1kg)R35.99R36.35
Sliced cheese (200g)R26.22R26.48

Basket total

R258.54R261.13

Do South Africans feel it?

People’s feelings are very mixed. Some say they had not yet noticed the effects of the higher VAT rate, while others complain about the pinch. Watch the video to hear a few public opinions.

 

Was this article helpful?

you may also like...

View All Other Articles View All
plan for irregular expenses

plan for irregular expenses

Make planning for irregular yearly expenses part of your budget plan to avoid nasty surprises.

Read More
the cost of loyalty programmes

the cost of loyalty programmes

It’s hard to find a company that doesn’t offer rewards these days. But are they worth your time – and money?

Read More
save, compound interest will do the rest

save, compound interest will do the rest

Compound interest can make a big difference to your savings. We look at 2 examples of how it can impact your money.

Read More
plan for life

plan for life

Avoid financial frustration by creating a financial plan for your life. Here’s what you need to consider.

Read More
View All Other Articles