Latest news with #2025BudgetSpeech
eNCA
24-05-2025
- Business
- eNCA
No VAT hike but consumers still feel the pinch
JOHANNESBURG - After two delays, the much-anticipated 2025 Budget Speech was finally delivered this week. While headlines focused on the scrapped VAT hike, South African consumers may still be in for a financial squeeze.
IOL News
24-05-2025
- Business
- IOL News
Navigating your finances: Key takeaways from the 2025 Budget Speech
The recent 2025 Budget Speech brought with it some crucial announcements that will directly impact your household budget. Image: Steve Buissinne/Pixabay THE recent 2025 Budget Speech brought with it some crucial announcements that will directly impact your household budget. For starters, there is good news on the value-added tax (VAT) front: it will remain at 15%, after the reversal of the previously proposed increase. While this offers some relief, it also means the planned expansion of the zero-rated food basket, which would have cushioned lower-income households, will no longer proceed. Previously, the proposed new items included the edible offal of sheep, poultry and goats; specific cuts such as heads, feet, bones and tongues; as well as canned vegetables. However, the 21 items previously classified as zero-rated still remain in place, including brown bread, maize meal, rice and samp, to name a few. For those who enjoy alcoholic beverages, you should expect to pay approximately 6.8% more across most categories, including malt beer, wine, sparkling wine, ciders, alcoholic fruit beverages and spirits. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Similarly, a 4.8% increase has been implemented for tobacco products, affecting cigarettes, vaping products (specifically HTP — heated tobacco product — sticks), cigarette tobacco, pipe tobacco and cigars. The sugar tax (officially known as the Health Promotion Levy) will remain unchanged for this financial year, despite an inflationary increase being due, to allow the sugar industry more time to restructure. However, citizens need to be prepared for a slight bump at the pumps. The general fuel levy is set to increase from 4 June 2025, marking the first such increase in three years. Specifically, petrol will go up by 16c per litre, and diesel by 15c per litre. This is an inflation-linked adjustment. On the social support side, there is continued commitment from the National Treasury. The old monthly age grant was increased by R120 to R2 310 in April 2025, with another R10 increase planned for October, bringing it to R2 320. Furthermore, the Covid-19 social relief of distress grant has been extended until the end of March 2026. Regarding municipal services, the budget allocates R610 per month for free basic services to 11.2 million poor households in 2025/26, covering essential needs like electricity and water. On this note, older persons are encouraged to go to their local municipalities to be registered for the indigent programme if they meet the qualifying criteria.
IOL News
24-05-2025
- Business
- IOL News
Navigating your finances: Key takeaways from the 2025 Budget Speech
The recent 2025 Budget Speech brought with it some crucial announcements that will directly impact your household budget. Image: Steve Buissinne/Pixabay THE recent 2025 Budget Speech brought with it some crucial announcements that will directly impact your household budget. For starters, there is good news on the value-added tax (VAT) front: it will remain at 15%, after the reversal of the previously proposed increase. While this offers some relief, it also means the planned expansion of the zero-rated food basket, which would have cushioned lower-income households, will no longer proceed. Previously, the proposed new items included the edible offal of sheep, poultry and goats; specific cuts such as heads, feet, bones and tongues; as well as canned vegetables. However, the 21 items previously classified as zero-rated still remain in place, including brown bread, maize meal, rice and samp, to name a few. For those who enjoy alcoholic beverages, you should expect to pay approximately 6.8% more across most categories, including malt beer, wine, sparkling wine, ciders, alcoholic fruit beverages and spirits. Similarly, a 4.8% increase has been implemented for tobacco products, affecting cigarettes, vaping products (specifically HTP — heated tobacco product — sticks), cigarette tobacco, pipe tobacco and cigars. The sugar tax (officially known as the Health Promotion Levy) will remain unchanged for this financial year, despite an inflationary increase being due, to allow the sugar industry more time to restructure. However, citizens need to be prepared for a slight bump at the pumps. The general fuel levy is set to increase from 4 June 2025, marking the first such increase in three years. Specifically, petrol will go up by 16c per litre, and diesel by 15c per litre. This is an inflation-linked adjustment. On the social support side, there is continued commitment from the National Treasury. The old monthly age grant was increased by R120 to R2 310 in April 2025, with another R10 increase planned for October, bringing it to R2 320. Furthermore, the Covid-19 social relief of distress grant has been extended until the end of March 2026. Regarding municipal services, the budget allocates R610 per month for free basic services to 11.2 million poor households in 2025/26, covering essential needs like electricity and water. On this note, older persons are encouraged to go to their local municipalities to be registered for the indigent programme if they meet the qualifying criteria.
The Citizen
21-05-2025
- Business
- The Citizen
Watch live: All eyes on Godongwana's ‘Budget 3.0' this afternoon
Dubbed 'Budget 3.0', the revised fiscal framework to be broadcast live by Finance Minister Enoch Godongwana at the Cape Town International Convention Centre this afternoon follows two failed attempts to pass the original 2025 Budget. The Witness reports that while the dispute within the Government of National Unity (GNU) over the 2025 Budget appears to have been resolved, attention has now shifted to the trade-offs Godongwana is expected to make when he tables his revised budget in Parliament at 14:00 today. On both previous occasions, Godongwana was not able to secure sufficient political backing, primarily due to his proposal to increase VAT — initially by 2%, and later by 0.5%. The VAT hike was intended to help close a R75b revenue shortfall facing the National Treasury. Investec Treasury economist Tertia Jacobs says today's budget is likely to reflect spending cuts, given National Treasury's reluctance to increase debt. 'Scrapping the VAT increase necessitates a reduction in spending to maintain a neutral impact on the budget deficit. 'The focus now will be on where said spending will be lowered, and the ability of the so-called GNU to craft a way forward that both demonstrates its priorities and allows for consensus,' she says. Disagreements over the budget had threatened to destabilise the coalition government, which is seen by many as a key stabilising force amid ongoing geopolitical tensions and a sluggish domestic economy. The DA, which drew criticism from its senior GNU partner — the ANC — after voting against the original budget in Parliament last month, now appears to be backing the revised version. DA leader John Steenhuisen, whose party had gone so far as to take Godongwana to court to compel him to revise the fiscal framework, expressed satisfaction with the recent consultation process. When asked in a recent interview about the progress of the talks, Steenhuisen said: 'We are going very, very well. 'There really is a sense of collaboration and working together to put on the table a credible budget that will be a strong, stable platform for us to go out and seek confidence from our investors, and also to start growing the economy and creating jobs.' Business Leadership South Africa CEO Busi Mavuso says government must now focus on reforms that stimulate growth to avoid future fiscal shortfalls. 'The growth outlook has deteriorated from February, when the budget was first tabled, meaning there will be less revenue in the form of tax collection and therefore a bigger headache on how to balance the books. 'At last week's business-government partnership meeting, held with the president, it was clear that we must speed up reform to drive economic growth. 'It is time for Parliament and government to show that we are capable of rallying around a coherent budget that maintains fiscal consolidation,' she says. Watch the 2025 Budget Speech live at 14:00: Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
