Today, 12 March 2025, South African Finance Minister Enoch Godongwana eventually delivered the National Budget Speech. The Budget is yet to be approved by Parliament.
The Minister remains committed to the goal of raising additional revenue, ZAR 28 billion in 2025/26 and ZAR 14.5 billion in 2026/27 sourced primarily from personal income tax and excise duties.
The Budget introduces a VAT increase of 0.5% effective 1 May 2025 as a measure to increase revenue and promote fiscal sustainability. A second 0.5% increase has also been proposed for the 2026/2027 fiscal year, to take effect on 1 April 2026, subject to the outcome of Government’s cost-saving initiatives.
Click here for our Budget Brief outlining the highlights of the Budget. Click here for a visual highlighting the proposed tax changes.
