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BUDGET 2025 | Smaller VAT increase, but SA hit with income tax squeeze

Enoch Godongwana, the Minister of Finance, is set to deliver the 2025 Budget Speech in Parliament, focusing on economic growth and support for vulnerable citizens amid limited resources.
President Cyril Ramaphosa expressed concerns about certain issues related to the budget, noting the importance of accountability and transparency.
The budget includes a 0.5% VAT increase and a projected economic growth of 1.9% for 2025, which is significantly lower than estimates for other developing countries.
Despite the passage of the budget, DA leader John Steenhuisen confirmed that the DA will not support the budget in its current form.

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Business Live

Budget adjustments take shape as Treasury sticks to 1.9% growth projection

Treasury plans to raise an extra R28bn in 2025/26 and R14.5bn in 2026/27 by gradually increasing VAT

2 days ago·Johannesburg, South Africa

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BizNews.com

SA Budget: VAT hike, massive infrastructure spend, and debt peaks

Key topics: VAT increased by 1% over two years to fund public services. R1.03 trillion allocated for infrastructure over the next three years. Government debt peaks at 76.2% of GDP, with debt-service costs rising. Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here. Support South Africa’s bastion of independent …

2 days ago

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Daily Maverick

Second time’s the charm: A more palatable Budget reflects increased compromise in the government

Although tensions remained high, evident from political jabs at the opposition Democratic Alliance during the ministerial press briefing, Finance Minister Enoch Godongwana portrayed the delay and subsequent passage of the budget positively, describing it as evidence of “a maturing and resilient...

2 days ago·South Africa

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mg.co.za

No bailouts for struggling parastatals such as Eskom, Transnet, treasury insists – The Mail & Guardian

The treasury will not provide bailouts to struggling state-owned enterprises in the 2025 budget and will instead focus on improving governance at these entities, it reiterated on Wednesday. Public and state-owned entities, including Transnet and Eskom, have posed a major risk to South Africa’s fiscal position, the treasury said in its 2025 budget review tabled in parliament by Finance Minister Enoch Godongwana, noting that most of the country’s …

2 days ago

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News24

BUDGET 2025 | Smaller VAT increase, but SA hit with income tax squeeze

Finance Minister Enoch Godongwana has balanced the disputed 2025/26 budget by hitting consumers with a 0.5-percentage-point VAT increase for the next two years and squeezing personal income taxpayers by not adjusting tax brackets for inflation.

2 days ago·South Africa

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Bloomberg

South Africa Proposes Smaller VAT Hike to End Budget Impasse

South African Finance Minister Enoch Godongwana proposed scaling back consumption-tax increases and curbing spending in a bid to win support for the budget from the nation’s fractious governing coalition after a previous iteration was shot down.

2 days ago·United States

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