fter a month-long delay, Finance Minister Enoch Godongwana is finally delivering the 2025 Budget Speech today, Wednesday, 12 March.
UPDATE: This article was adjusted to feature the latest forecasts and news updates regarding the Budget Speech.
What to expect from this year’s Budget Speech
The first attempt in February didn’t just flop—it combusted in real time. Political infighting over his planned 2% VAT hike derailed the whole thing, forcing a rewrite.
Then, in what might be the most chaotic hot-mic moment in Treasury history, Godongwana was recorded ranting about SARS Commissioner Edward Kieswetter.
Yes, the finance minister openly loathing the guy responsible for collecting tax money—the irony writes itself.
Now, after a PR mess and some serious backroom deals, the new Budget is here. While big tax hikes are still on the table, the full 2% VAT increase is dead. Instead, Treasury might ease in a smaller VAT hike—somewhere between 0.5% and 1%—and push fuel levies and sin taxes up even more.
Either way, taxpayers are getting hit.
Budget policy announcements to watch out for
Finance experts at Investec and competing firms have sounded out the alarm about key policy announcements taxpayers must look out for in today’s Budget Speech.
VAT Hike? Yeah, but not 2%… yet
The February budget was scrapped because of the proposed 2% VAT increase (from 15% to 17%), which coalition partners in the Government of National Unity (GNU) rejected.
Now, Treasury is expected to phase in a smaller increase (0.5%-1%) while hinting at more hikes in 2026 and 2027, according to analysts at Nedbank.
Bracket Creep is coming
Originally, tax brackets were going to be adjusted slightly for inflation.
Not anymore. No changes mean taxpayers move into higher brackets as incomes rise—without getting actual relief. More money for Treasury, less in your pocket.
Fuel levies frozen? Not anymore
After two years of no increases, the general fuel levy and Road Accident Fund (RAF) levy are expected to go up.
This will hit motorists hard, especially with fuel prices already soaring.
Medical Aid Tax Credits: No relief
Medical aid tax credits were already not getting an inflation adjustment—and that’s not changing. Treasury is also signaling plans to scrap them entirely to help fund National Health Insurance (NHI) in the long run.
Sin Taxes: The government wants you to pay for your vices
Alcohol and cigarette taxes are going up—again.
The original budget had hikes of 4.8%-6.8%, but expect an even bigger increase now. Treasury is also introducing a progressive tax rate for beer and wine—so expect more price jumps.
South Africa’s debt-to-GDP ratio is sitting at 76%, with 21% of tax revenue going toward debt servicing. Despite that, government is increasing spending—on public sector wages, infrastructure, PRASA, SANRAL, and SANDF troop deployments.
The risk? More tax increases in the coming years.
How to watch the budget speech live in South Africa
If you want to catch Godongwana’s second take at this speech, you can watch it live at 14:00 (SAST) on:
- TV – SABC News, eNCA, Newzroom Afrika
- Livestream – Treasury’s YouTube, Parliament’s website, major news platforms
Swisher Post readers can enjoy the convenience of tuning into the speech below. We will embed the live feed as soon as it becomes available.