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The VAT increase businesses are begging for in South Africa | SA News

Luke Fraser
 ·24 Feb 2026

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Lula has again called on Finance Minister Enoch Godongwana to increase the VAT threshold for businesses during the 2026 National Budget.

The small business funder has asked Godongwana to increase the compulsory VAT registration threshold from R1 million to R3 million to unlock liquidity within the SME sector.   

Lula has previously noted that small and medium-sized enterprises (SMEs) account for roughly 40% of South Africa’s GDP.

The VAT registration threshold has…

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