“Finance Minister Enoch Godongwana has announced that VAT, currently at 15%, will increase by half a percentage point in 2025/26 and another half a percentage point in the following year.
The minister revealed that this increase is due to pressures to spend in the health, education, transport, and security sectors.
“There are several persistent spending pressures in health, education, transport, and security. These have to do with the government properly fulfilling its service delivery mandate. After careful consideration, the government has decided to fund these. Deferring the funding of these sectors further would compromise the government’s ability to meet its constitutional obligations to the people,” Godongwana revealed.
Ahead of the Budget Speech, Democratic Alliance leader John Steenhuisen confirmed that the party will not be supporting the budget in its current form. The DA will not support the budget in its current form. We will continue to fight for economic growth and jobs,” Steenhuisen confirmed. Additionally, the Economic Freedom Fighters and a host of trade unions have also voiced their intentions to challenge the decision to increase the VAT burden on South Africans.”
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