FEBRUARY 2025 – SOUTH AFRICA
2025/2026 BUDGET SPEECH
It is important that employers note the following:
2025/2026 Budget Speech postponed
Finance Minister Enoch Godongwana was scheduled to present the budget on Wednesday, 19 February 2025, marking the first under the Government of National Unity (GNU). However, in an unprecedented move in South Africa’s history, the budget speech was postponed at the last minute.
Ahead of the speech, reports indicated that the Value Added Tax (VAT) was set to increase by 2% to 17%. However, disagreements among parties within the GNU led to the decision to delay the budget.
As a result, the executive adjourned the National Assembly’s sitting to allow more time for reassessing the budget. Statements from the sitting confirmed that the primary point of contention was the proposed tax increases, which sparked opposition within the coalition.
The budget is now expected to be presented on 12 March 2025.
