South Africans will wake up to a new economic reality this week as three major consumer price increases kick in.
Yesterday, both VAT and sugar tax was hiked following the announcement by former Finance Minister Malusi Gigaba in his budget speech earlier this year.
The fuel price is set to rise by 72 cents a litre from the stroke of midnight tomorrow.
The coming week is expected to put immense pressure on consumers’ pockets as price increases will affect basic necessities such as food, clothing and transport.
The VAT increase moved from 14% to 15% on all taxable items.
This means that for every R100 spent, R15 will go to the tax man.
The levy on sugary beverages was also implemented yesterday, which is now charged at 2.1c per gram of sugar content, after the minimum 4 grams per 100ml.
In a third spin, Energy Minister Jeff Radebe announced that from Wednesday, motorists will have to fork out 72 cents more for 95 octane while 93 octane is going up by 69 cents.
The price of all grades of diesel will climb by 65.2c per litre.