Finance Minister Enoch Godongwana. Photographer: Dwayne Big / Bloomberg, through Getty Images
Finance Minister Enoch Godongwana announced a percentage of a percentage over two years, which has increased the size of a popular dimension, which has been forced to leave the first budget in February.
In 2026, VAT will be followed by one after another in the next fiscal year in the next fiscal year in 16%.
Corrected tax offers, a three-week painful controversial in the judge coalition in connection with a VAT increase plans. President Cyril Ramaphosa, President Cyril Ramaphosa’s national unity government discussed the leaders of political parties to the minister’s plans.
A short time before the budget press, a cabinet meeting took place in the competition.
AZC’s Democratic Union, the largest coalition partner (,), said that the revised budget will not vote for a clear budget or causing a parliamentary amendment to the next two days, he said, he will not support any VAT increase.
This has never happened in the past, but the tax change cannot be carried out without the approval of the legislature and there are no numbers to ensure the last May of ANC.
Leader John Steenhuisen, a few minutes ago, a few minutes ago, said he would not support the budget in the form of the party.
Godongwana remained equal to the spending pressure on the Treasury, as well as the critical debt consolidation target without obtaining more income.
The Treasury will reach 2024 trillion in 2024, in February last year, more than the forecast in February, the forecast is less than a 20% reduction in the Import VAT collection.
A briefing in a media shortly before the budget speech on Wednesday, the Minister, National Health Insurance Law, Basic Education Law Enforcement Law and Operation Law Enhancement of Coalition Bills
According to him, the party said they would support the new VAT increase in certain conditions in special discussions. They are understood to include a comprehensive opinion of government expenses.
“This is not related to the increase in VAT, it is many of them.
“Therefore, they want to win something. It is important that we call a spade a shovel,” he said, “he said, he was waiting for the parliamentary committees on Friday, but he said he had no immediate concern.
“Today I and I walked away.”
The main reasoning of the minister for the initial VAT proposed by the minister – for the first time since 2017, he found R60 billion to fill out education and health budgets for the first time and provide urgent support for the passenger railway. Revised growth, plus leaving the parenthesis of individual income tax, R28 billion R14.5 billion in 2025-26 and 2026-27 and R14.5 billion, R14.5 billion, Revalral.
Additional tax offers include regulating medical tax loans to reduce the fact that the fuel can be adjusted for inflation, and reduce inconsistent and acute taxes.
Health and education budgets will still increase by 5.9% per annum in the Middle and the budget is still in the middle term for South Africa’s passenger railway agency. However, the price of a smaller VAT increase will increase in social welfare grants.
These will still increase on the inflation rate and the budget still allocates RUPT from RUPT to RUPT to extend the social relief of the Battle Grant.
“This was a function of really the size of VAT,” said Godongwana told the media.
Consolidation expenditures will increase by medium-term medium-term 5.6% in medium-term 2027-28.
Thanks to the total budget surplus, in 2025-26, 76.2% of GDP will be stabilized in 76.2%. The budget prepared for February is 0.1% higher than the budget. The consolid budget deficit is projected to be compared to 3.5% in 5% this year in 2027-28.
Debt service costs this year will be R389.6 billion.
In his speech, Godongwana, who tried to put this figure into the context, said: “Health, police and basic education are more than what we receive.”
Treasury, debt stabilizer will serve as a primary surplus of the primary budget, financial anchor, said he will serve its lead with the greatest preliminary surplus to reduce the ratio of GDP.
Along with the budget on Wednesday, he published a discussion document on potential for financial anchors.
“Evaluation of financial anchors is based on places where governments have to make income or expense options that are favorable without compromising important social and economic programs for future generations,” he said.
The treasury has made an average of 2025 to 1.9% in average in the last four years later. Godongwana said that the economy grew only by 0.6% in 2024.
The reason was the weaker than the expected performance of the transport and agricultural sectors, the second was a narrowing in the third quarter full of illness and drought.
“The greater dispute, the greater controversy, as the increase in the increase in the promotional value tax in the discussions, should be about how the economy grew in favor of the majority.”
With an average, medium-term, medium-estimated average average with an average of 1.8% to 1.8% by increasing family consumption and temperate employment.
The treasury, a decrease in the global worldview, especially trade and geopolitical tensions, variability of the financial market, increased commodity prices, and increased commodity prices and financial conditions for the developing economy.
Consolidation expenditures will increase by medium-term medium-term 5.6% in medium-term 2027-28. The budget is an additional R46.7 billion for critical infrastructure projects, R35.2 billion R35.2 Billion and R8.2 billion R8.2 billion to increase social grants in accordance with inflation.
A medium-term additional additional R23.4 billion is allocated to finance the salary increase in the state service. The three-year salary agreement provides an increase in 5.5% in 2025, after the increase in inflation in the next two years.
The treasury confirmed that the government will partially compile an extraordinary reserves to raise the bill.
The budget provides additional financing for infrastructure costs.
After a public spitting of the wisdom of the new tax increase, the Treasury agreed to allow additional R7.5 billion in addition to the average term to modernize the transactions to the South African income service
