Budget 3.0, South Africa’s fiscal tightrope: No VAT hike, but pump pain returns
Finance Minister Enoch Godongwana’s 2025 Budget, presented on 21 May 2025, marks a pivotal moment in South Africa’s fiscal policy, reflecting a delicate balance between revenue generation and socio-economic support.
Notably, the government has affirmed its decision to maintain the VAT rate at 15%, reversing previous proposals for an increase. This decision aligns with its greater commitment to comprehensive reviews aimed at providing sustained relief to lower-income consumers.