On 21 May 2025, Finance Minister Enoch Godongwana delivered his third national budget speech. While many of the proposals outlined in the March 2025 budget remain in place, several noteworthy updates have been announced:

1. VAT: No Changes to the Rate or Basket

• The VAT rate will remain unchanged at 15%.

• The previously proposed expansion of the zero-rated basket, announced in March, has been withdrawn.

2. Fuel Levy Adjustments

Effective 4 June 2025, the general fuel levy will increase as follows:

• Petrol: +16 cents per litre

• Diesel: +15 cents per litre

This marks the first adjustment to the fuel levy in three years.

3. Fiscal Outlook and Adjustments

• Debt-to-GDP Ratio: Government debt is now projected to stabilize at 77.4% of GDP, a slight increase from 76.2% projected in March.

• Main Budget Deficit: Despite the VAT policy reversal, the main budget deficit is forecast to decline by R8 billion over the Medium-Term Expenditure Framework (MTEF).

For further information and detailed documentation, visit the National Treasury’s official budget site.