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TAXING TIMES AHEAD

Daily Voice

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May 29, 2025

Following the budget speech, mense must know that there are...

LAST week, after two failed attempts, South Africa's Finance Minister, Enoch Godongwana, delivered the third budget for the year. But does it even really matter to gewone mense?

While many South Africans breathed a sigh of relief at the announcement that the proposed VAT increase had officially been scrapped, the actual cost of this budget might not be as comforting as it seems.

Sebastien Alexanderson, Head of National Debt Advisors, says that consumers should look beyond the headlines.

No VAT increase sounds like a win, but households are still struggling, and will continue to do so. Government might have scrapped the VAT hike, but they need to make up for it in other ways.

The main one is the fuel levy hike. Starting 4 June 2025, fuel levies will increase by 16c per litre for petrol and 15c for diesel, ending a three-year freeze.

With total fuel taxes now accounting for 30 to 33 percent of the pump price, this directly impacts transport costs, which in turn affect the prices of food and goods.

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