Tag: 2025 Budget Speech
Proposed VAT increase – strategies for small businesses
In the 2025 Budget Speech, Finance Minister Enoch Godongwana unveiled a proposed staggered increase to the Value Added Tax (VAT) rate. This move, designed to address economic challenges and fund key government initiatives, will undoubtedly add pressure to small businesses, especially those who are already struggling with cash flow. However, it’s worth understanding who pays VAT, how VAT contributes to total tax revenue, and how you as a small business can manage this change.
2025 budget and tax reforms – opportunities for financial advisers
As South Africans braced for a heavier tax burden, the 2025 Budget Speech delivered a mix of relief and reality. While tax increases were lower than feared, financial advisers will soon need to navigate a complex landscape of regulatory reforms.
VAT hike – holistic employee support vital
The South African government has concluded its 2025 budget deliberations. It announced a Value Added Tax (VAT) increase of 0.5% from May 2025. It also announced a possible further 0.5% hike by April 2026. These increases are part of measures to address the growing budget deficit.
2025 Budget Speech raises renewable energy concerns
The 2025 Budget Speech outlines significant opportunities for South Africa’s private renewable energy sector. These opportunities include streamlined public-private partnership (PPP) regulations, expanded infrastructure investment and greater clarity around grid upgrades. However, it also raises important concerns for private developers and investors.
2025 GNU budget – prioritising growth in uncertain times
After the false start of 19 February, Finance Minister Enoch Godongwana tabled the 2025 Budget on 12 March. The main tax policy proposals include raising the Value Added Tax (VAT) rate by 0.5% in each of the next two years. This will bring VAT to 16% in 2026/2027. It will be accompanied by no inflationary adjustments to personal income tax brackets, rebates, or medical tax credits.
Budget Speech 2025 – cuts, compromises and curveballs
The shocks, surprises and shortfalls in the initial budget on 19 February 2025 made way for a reworked National Budget. This new budget is marked by cuts, compromises and curveballs. Although Finance Minister Enoch Godongwana’s first budget attempt was unexpectedly stopped three weeks ago, a higher VAT rate is still on the table.
2025 Budget Speech highlights – VAT hikes and spending priorities
The updated South African National Budget for 2025, tabled on 12 March, tries to balance the need to address the country's fiscal challenges. At the same time, it aims to stimulate economic growth and improve public services. Over and above these priorities, it also balances political pressure from the Government of National Unity (GNU).
