“It is deeply disappointing that the minister missed an opportunity to increase HPL to 20% to boost the fiscus and instead chose the option to rather increase VAT, which will hit hard in the pockets of the poorest of the poor. "
Many households earning less than R8,000 per month often rely on relationships with neighbours and relatives, borrowing from them to bridge the gap before their next pay.
There are a number of VAT-inclusive services associated with the purchase of a home, for which buyers will need to allocate additional budget, which will impact particularly on first-time buyers seeking to gain a foothold on the first rung of the property ladder.
Finance Minister Enoch Godongwana said in the 2025 Budget that government will impose more taxation on tobacco and alcohol products in the coming year.
Watch the country's finance minister deliver his 2025 budget speech below.
Financial experts warn that a potential VAT increase could devastate South African households already struggling with rising living costs and mounting debt. The postponement of the Budget Speech has left the nation anxious about possible tax hikes.
South Africa faces potential economic turmoil as the Finance Minister's Budget speech is postponed amidst GNU disagreements over VAT increases. Leading economists warn of severe consequences for the nation's GDP and unemployment rates.
FairPlay movement said that the government should use the delay in announcing this year’s Budget to provide for the inclusion of VAT-free chicken in next month’s revised Budget proposals.
Below is the full budget speech delivered by South Africa’s Minister of Finance, Enoch Godongwana.