2025 Budget Speech 2.0 | How it affects you and your business

Finance Minister Enoch Godongwana’s 2025 Budget proposes several key tax and fiscal changes that will directly impact individuals and businesses. The most notable change is the phased increase in VAT, with a 0.5 percentage point hike planned to take effect on 1 May 2025 and another on 1 April 2026, increasing the VAT rate from the current 15% to 16% over two years. To mitigate the impact on lower-income households, the basket of VAT zero-rated food items will be expanded to include additional essential goods.

Review of the 2025 Budget Speech

Economic Context: The Minister acknowledged the economic stagnation over the past decade, with GDP growth averaging less than 2%. In 2024, the economy grew by only 0.6%, and medium-term projections estimate an average growth of 1.8%. The speech emphasized the need for faster, inclusive economic growth to meet developmental goals.

2024/25 Budget Review

The Minister of Finance, Mr. Enoch Godongwana, tabled his budget review on 21st February 2024. While tax revenue performed well in 2021/22 and 2022/23 due to high commodity prices, revenue for 2023/24 is now expected to fall short by R56.1 billion. Government has proposed tax increases totalling R15 billion in 2024/25 to alleviate immediate fiscal pressures, while limiting the impact on economic growth. The following were the key tax proposals:

Upcoming Budget Speech 2024: Tax Implications and Economic Outlook

Introduction

Budget 2024/2025 Scheduled for 21st February 2024

The minister of finance will table his budget proposals on February 21st, 2024.Some of the key predictions on the back of an election year are as follows:

Budget date set for 22nd February

Stabilising the public finances to Weather the global storm

2022 MEDIUM TERM BUDGET POLICY STATEMENT(MTBPS)

Fiscal policy

Economic outlook

Budget 2022 – Consolidated spending Plans

Budget 2022 – Economic Outlook

2022/2023 Budget Highlights

Budget 2022 – Fiscal Policy