ARTICLE · 19 MARCH 2025

It's Not All VAT - 2025 Budget Speech Predictions

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In an outcome that could not have been predicted, for the first time in 30 years of democracy, South Africa's budget speech was not presented by South Africa's Minister of Finance, Enoch Godongwana on 19 February 2025...

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In an outcome that could not have been predicted, for the first time in 30 years of democracy, South Africa's budget speech was not presented by South Africa's Minister of Finance, Enoch Godongwana on 19 February 2025 as planned and instead the Speaker of the National Assembly informed the country that the budget speech would be postponed.

Ostensibly due to a proposed 2% increase in the value-added tax ("VAT") rate, the Government of National Unity ("GNU") could not agree on the budget, which is now tabled to take place on 12 March 2025. While South Africa's VAT rate is still relatively low compared to other developing countries, South African taxpayers are subject to one of the heaviest tax burdens in the world, with tax equalling almost 25% of South Africa's gross domestic product.

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