VAT to be hiked by one percentage point over two years, DA rejects Budget

March 12, 2025

Daily Maverick

Finance Minister Enoch Godongwana announced a phased VAT increase of 1 percentage point over two years in his Budget Speech. The proposal includes a 0.5 percentage point rise from the current 15% on 1 May 2025 and another increase in 2026. Social grants will also see increases, with the SRD grant extended until March 2026 and restructured into a permanent basic income support mechanism.