Author: Agency
Government will adjust the excise duties on alcohol and tobacco products at above the expected inflation rate in the 2025/26 financial year. According to the 2025 National Treasury Budget Review document, government is proposing to increase excise duties on alcoholic beverages by 6.75%, while the tobacco excise duties are expected to increase by 4.75% for cigarettes, cigarette tobacco, and electronic nicotine and non-nicotine delivery systems (“vaping”). The proposed increase for pipe tobacco and cigars is 6.75%. “To ease the administrative burden of implementing adjustments on Budget Day, in future years, adjustments to excise duties will take effect from 1 April.…
Over the next three years, government spending on economic development will be the fastest-growing function at an annual average rate of 8.1%, driven by higher allocations to infrastructure projects. According to the 2025 National Treasury Budget Review, medium-term spending for economic development will grow from R252.4 billion in 2024/25 to R318.4 billion in 2027/28. The Department of Land Reform and Rural Development will expedite the finalisation of outstanding land claims, prioritising older claims. The department has been allocated R11.6 billion over the medium-term to settle about 844 land restitution claims, with R3 billion earmarked to allocate 138 000 hectares of…
In light of new and persistent spending pressures in health, education, transport and security, government has decided to raise value-added tax (VAT) by 0.5 percentage points in each of the next two years, which will bring VAT to 16% in the 2026/27 financial year. “These have to do with the government properly fulfilling its service delivery mandate. After careful consideration, the government has decided to fund these. Deferring the funding of these sectors further would compromise the government’s ability to meet its constitutional obligations to the people,” Minister of Finance Enoch Godongwana said on Wednesday. The first 0.5 percentage point…
The South African government will spend more than R1 trillion over the next three years on public infrastructure in a show of government’s commitment to driving economic growth. This is according to Minister of Finance Enoch Godongwana who delivered the 2025 Budget speech in Parliament on Wednesday. “[Infrastructure] is a key pillar of our growth strategy. It is the bedrock for economic development, a key source of jobs, and an avenue to scale-up service delivery. “This budget reflects that understanding. Allocations towards capital payments are the fastest growing area of spending by economic classification. Public infrastructure spending over the next…
The South African Revenue Service (SARS) has been allocated R3.5 billion in the current financial year and an additional R4 billion over the medium term. Tabling the 2025 Budget Speech on Wednesday, Minister of Finance Enoch Godongwana said broadening the tax base and improving the administrative efficiency of SARS allows government over time, to spread the tax burden more evenly and equitably. With this budget allocation, SARS will focus on leveraging technology, data science and artificial intelligence to foster efficiency and transparency in tax administration while combating exploitation by criminal syndicates. “By the end of February this year, SARS reported a…
Government has provisionally allocated an additional R19.2 billion over the medium term for the Passenger Rail Agency of South Africa’s (PRASA) critical signalling upgrades. Tabling the 2025 Budget Speech on Wednesday, Minister of Finance Enoch Godongwana, said the agency was making steady progress towards rebuilding infrastructure to provide affordable commuter rail services. “To sustain this progress, we have provisionally allocated an additional R19.2 billion over the medium term for critical signalling upgrades. This will enable commuters from areas like Mamelodi, Kwa-Mashu, Motherwell and Khayelitsha to catch a train every 10 minutes, to get to and from work and significantly reduce…
South Africa’s economy is projected to grow at an average of some 1.8% from 2025 to 2027, despite sluggish growth over the past decade. This is according to Finance Minister Enoch Godongwana who delivered the Budget Speech in Parliament on Wednesday. “[The] truth is our economy has stagnated for over a decade. In that time, Gross Domestic Product [GDP] growth has averaged less than 2%, far below the level required to meet our expanding list of needs. “In 2024, the economy grew by only 0.6%. Over the medium term, GDP growth is projected to average 1.8%. “To meet our goals…
South Africa requires upwards of R440 billion in the next 10 years to expand its transmission infrastructure, says Minister of Electricity and Energy, Dr Kgosientsho Ramokgopa. Addressing the Africa Energy Indaba in Cape Town on Tuesday, the Minister said the country’s transmission development plans have identified the need to modernise and expand the grid for 14 000 kilometres in the next 10 years. “This is going to require an enormous amount of investment. The fiscus won’t be able to carry that. The Eskom balance sheet is not sufficient, so it is important to find bespoke financing instruments to make this possible,” the…
The Minister of Finance Enoch Godongwana and National Treasury are set to finalise the budget and table it before Parliament next week on Wednesday, 12 March 2025. This is according to a Cabinet statement issued by the Government Communication and Information System (GCIS) on Tuesday, following a special meeting held by Cabinet on Monday. The meeting was convened to consider inputs by members of the Cabinet into best possible options, under the circumstances, to fund the Budget of 2025/26 financial year and the medium term. “This follows another special Cabinet meeting on Monday, 24 February 2025, that allowed broad discussions…
Small Business Development Minister Stella Ndabeni has announced the creation of a R500 million Spaza Shop Support Fund that aims to enhance market competitiveness to help spaza shops and food handling outlets compete with larger retailers. Addressing media in Pretoria on Sunday, the Minister said the fund will be launched soon and will support township convenience shops, including spaza stores. “The fund will be launched in the next two weeks and a date will be communicated,” she said adding that the fund will comprise of funds from the Department of Small Business Development (R150 million) and the Department of Trade,…