The National Automobile Dealers’ Association (NADA) welcomes the announcement that the proposed 0.5% VAT increase will not proceed. In an economy where consumers are financially strained, this decision offers much-needed relief and avoids adding pressure that could hinder GDP growth.
This encouraging development comes on the back of a series of positive indicators: inflation figures released yesterday are the best in five years and well below the target band; oil prices have remained below $70 a barrel, contributing to a fuel price that is 8.8% lower than in 2024; and South Africa is approaching 40 consecutive days without loadshedding. In addition, the temporary suspension of US tariffs for 90 days and the commencement of formal engagements between the South African delegation and the US government mark a potential turning point in trade relations.
Although we continue to face many headwinds, these signs point to improving economic stability and greater certainty. They provide a solid foundation to shift focus towards driving inclusive economic growth, creating opportunities, and rebuilding confidence in the South African economy.
“NADA believes that policy consistency and a stable economic environment are essential to restoring confidence across the value chain – from manufacturers and dealers to business and consumers,” said NADA Chairperson Brandon Cohen.
