Pause on VAT hike, and stealth tax warning for South Africans

The South African rand experienced a slight decline on Tuesday, losing some of its recent gains driven by the continued surge in gold prices, which have reached an all-time high.

The rand traded at 18.15 against the US dollar, more than 0.3% weaker than its previous closing value. Gold prices hit a record $3,038.26 per ounce as the rally continues, fueled by investors seeking refuge from trade tensions initiated by US President Donald Trump’s tariff policies.

South Africa is a major producer of precious metals, and due to record gold prices, local miners might increase their output.

ETM Analytics noted that a consistently rising gold price will eventually motivate local miners to enhance their efforts to extract harder-to-reach gold deposits. What may not have seemed viable a few years ago must now look appealing.

On Wednesday (19 March), the rand was trading at R18.16 to the dollar, R23.58 to the pound and R19.85 to the euro. Oil is trading lower at $70.31 a barrel.

Here are five other news stories making waves in South Africa today:

Pause on VAT hike: The finance minister’s ability to raise VAT before passing legislation faced criticism in Parliament on Tuesday. The Parliamentary Budget Office (PBO) warned that this could undermine public participation and is effectively irreversible. At least two political parties are seeking legal advice on the constitutionality of the issue, and the PBO has advised that the adjustment waits for Parliament to pass legislation. [News24]

Stealth taxes: Several smaller ‘stealth’ measures are kicking in from April. This includes a 24.2% hike to South Africa’s carbon tax, above-inflation adjustments to alcoholic beverages and tobacco and increases to environmental levies like the plastic bag tax and incandescent lightbulb levy. [BusinessTech]

Name change still on the cards for Sandton Drive: The national government is in discussions with the leadership of the City of Johannesburg to reconsider the proposed renaming of Sandton Drive to Leila Khaled Drive. This was confirmed by presidential spokesperson Vincent Magwenya, who informed TimesLIVE Premium that the conversation is ongoing. [TimesLive]

E-toll bill: The Gauteng government has set aside just over R5 billion to settle its e-toll debt. This was revealed during Tuesday morning’s tabling of the 2025/2026 financial year budget by Gauteng Finance MEC Lebogang Maile. [EWN]

Airport chaos: Transport Minister Barbara Creecy has confirmed that significant shortages of critical skills, equipment failures, and outdated procedures at Air Traffic & Navigation Services (ATNS) have led to substantial flight delays and cancellations. She emphasized that intervention is necessary to prevent a potential breakdown in aviation safety. [Daily Maverick]