Due to the March 2025/26 Budget proposals being effectively withdrawn by court order, new Budget Proposals were tabled by the Minister of Finance on the 21st May 2025. This has resulted in changes to our Tax Guide publication
as follows:
Page 2 – Budget Highlights
VAT
The March proposed VAT increases have been replaced by the following:
The Western Cape High Court has delivered a landmark judgment on VAT regulations in South Africa, ruling that the proposed VAT increase, which was set to take effect on May 1, 2025, has been suspended.
This ruling brings relief to consumers and businesses across the country, ensuring that no VAT increase will proceed without full legislative oversight.
Fuel and RAF levies
The March proposal of no increase has been replaced by the following:
To replace a portion of the lost revenue from the withdrawal of the VAT rate increases, government proposes an inflationary increase in the general fuel levy for petrol and diesel to R4.01c/â„“ and R3.85c/â„“, respectively, effective from 4 June 2025.
page 3 – Comparative Tax Rates
VAT 2026 Column amended to 15%
Page 30 – VAT
Standard rated supplies
The table reflecting the March proposals has been removed and replaced by the following:
The current VAT rate is 15%.
Page 50
Transfer duty on immovable property VAT tax fraction amended to
15/115
