The National Assembly Speaker, Thoko Didiza, announced on 19 February 2025 that South Africa’s Budget Speech 2025 has been postponed to March 2025.
South Africa’s Finance Minister, Enoch Godongwana was due to deliver his annual Budget Speech on 19 February 2025. South Africans tuned in to witness a discussion over an unprecedented postponement of the Budget Speech, due to a matter that needed to be agreed upon between the Government of National Unity, which is understood to be a dispute regarding the proposed increase in Value Added Tax from 15% to 17%.
What’s next?
The Budget Speech is expected to be presented in Parliament on 12 March 2025.
However, certain media outlets were granted permission to publish what is understood to be the contents of the Speech. While no tax tables or amendments were published in the Speech itself, it was noted in the Speech that Government is adjusting personal income tax brackets to protect lower-income earners. Other tax proposals include partial adjustment of the remaining income tax brackets.
No changes will be made to medical tax credits, and above-inflation increases on alcohol and tobacco excise duties have been proposed. It is important to note that any of these proposals could be amended when the final Budget Speech is presented in March. More detail will follow when it becomes available.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Kesiree Mari
Director – South Africa
Claire Abraham
Senior Manager – South Africa
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