Finance Minister Enoch Godongwana recently presented South Africa's (SA) revised 2025 budget, proposing a phased increase in the Value-Added Tax (VAT) rate by one percentage point over two years.

This decision follows a postponement of the budget announcement last month due to disagreements within the Government of National Unity (GNU) regarding an initially proposed two percentage point VAT hike. The revised plan includes a 0.5% increase effective May 1, 2025, with an additional 0.5 percentage point hike scheduled for April 2026, raising the VAT rate to 16% by 2026/27.

To provide further insights into the implications of this budget, Peter Ndoro spoke to Dr. Azar Jammine, Director and Chief Economist at Econometrix.

Finance Minister Enoch Godongwana recently presented South Africa's (SA) revised 2025 budget, proposing a phased increase in the Value-Added Tax (VAT) rate by one percentage point over two years.
This decision follows a postponement of the budget announcement last month due to disagreements within the Government of National Unity (GNU) regarding an initially proposed two percentage point VAT hike. The revised plan includes a 0.5% increase effective May 1, 2025, with an additional 0.5 percentage point hike scheduled for April 2026, raising the VAT rate to 16% by 2026/27.
To provide further insights into the implications of this budget, Peter Ndoro spoke to Dr. Azar Jammine, Director and Chief Economist at Econometrix.