{
  "id": 17341175,
  "title": "Electricity costs soar 165% in a decade, but the fight to remove VAT faces a familiar obstacle",
  "url": "https://urgent.news/2026/10/31/electricity-costs-soar-165-in-a-decade-but-the-fight-to-remove-vat",
  "topic": "world",
  "section": "World",
  "published": "2026-10-31T05:00:00.000Z",
  "source": {
    "name": "IOL",
    "slug": "iol",
    "url": "https://iol.co.za/business/2026-10-31-electricity-costs-soar-165-in-a-decade-but-the-fight-to-remove-vat-faces-a-familiar-obstacle/"
  },
  "original_language": "en",
  "account": "South African households are facing a significant increase in electricity costs, with tariffs up 165% over the past decade. Despite these hikes, the National Treasury has no plans to remove Value Added Tax (VAT) from electricity purchases, citing the need for a broad VAT base to maintain revenue. Treasury argues that zero-rating electricity would reduce government revenue, as the sector generated approximately R22.21 billion in net VAT revenue during the 2024/25 financial year.\n\nThe uMkhonto weSizwe Party (MK) has proposed including electricity in the VAT zero-rated items, arguing that VAT adds to financial pressure on already struggling households. However, the Organisation Undoing Tax Abuse (Outa) has not taken a definitive stance on the matter, suggesting that electricity should be exempt only if it is considered an essential service.\n\nThe government currently provides free basic electricity to qualifying indigent households through the Free Basic Electricity program, with R21.6 billion allocated for basic energy in the 2026/27 Budget. However, the adequacy of this allocation is under review, and the Department of Electricity and Energy is examining whether the existing 50kWh monthly allocation remains sufficient to support low-income households.",
  "summary": "Electricity tariffs have risen sharply in recent years, but National Treasury says scrapping VAT on power bills is not under consideration, leaving households without this potential source of relief.",
  "key_points": [
    "Electricity tariffs in South Africa increased by 165% over the past decade.",
    "National Treasury refuses to remove VAT from electricity purchases.",
    "uMkhonto weSizwe Party supports VAT zero-rating for electricity."
  ],
  "editors_take": "Prioritizing tax revenue over consumer relief signals that the government views electricity levies as essential fiscal pillars despite the mounting financial strain on struggling South African households.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}