Godongwana tables 2025 revised budget, introduces fuel tax increases

MOTORISTS will have to bear the brunt of the withdrawn VAT hike, as Finance Minister Enoch Godongwana announced inflationary increases to petrol and diesel prices in order to address the gap left by the abandoned VAT increases.

- MAYIBONGWE MAQHINA

“The reality, however, is that the decision to do away with the VAT increase, without a viable alternative source of revenue, significantly reduced our ability to fund additional government programmes and projects to the extent we had deemed necessary,” he said.

The Minister said the budget supported sustainable finances, the social wage and investments in economic growth.

“This is not an austerity budget,” he said.

Godongwana also said the budget was redistributive because it directed 61 cents of every rand of consolidated and non-interest expenditure towards the social wage. “This is the money that will be spent to fund free basic services like electricity, water, education, healthcare, affordable housing as well as social grants for those in need. This budget invests over R1 trillion in critical infrastructure to lift economic growth prospects and improve access to basic services.”