📊 Budget Speech 2025: 7 Key Highlights and What They Mean for You

Finance Minister Enoch Godongwana delivered the much-anticipated 2025 National Budget Speech on Wednesday, 22 May, laying out the government's fiscal strategy for the coming year. The budget aims to strike a balance between stimulating the economy, improving revenue collection, and supporting social services.

At Horizon Trading Solutions, we’ve gone through the details to break down seven key announcements—and what they mean for you as a taxpayer, business owner, or investor.

1. 💼 No Change to Personal Income Tax Brackets (But Watch Inflation)

The tax brackets for individuals remain unchanged, which effectively results in a higher tax burden due to inflation-driven salary increases pushing many into higher brackets—also known as bracket creep.

What this means for you: You might pay more tax even if your purchasing power hasn't improved. Strategic tax planning is now more important than ever.

2. 🧾 VAT Stays at 15%, But Enforcement Tightens

The VAT rate remains unchanged at 15%, but SARS has been granted additional resources to improve compliance and crack down on VAT fraud, especially in high-risk sectors.

What this means for businesses: Make sure your VAT returns are in order—errors and inconsistencies may now trigger quicker audits.

3. 🏢 Corporate Tax Rate Maintained at 27%

Despite calls for relief, the corporate tax rate remains at 27%. However, there are targeted incentives for manufacturing and green energy sectors to promote economic growth.

What this means for SMEs: Now’s the time to explore sector-specific incentives and deductions to reduce your tax bill.

4. 🛢️ Fuel Levy and Sin Tax Increase

The general fuel levy increases by 10c/litre, and sin taxes on alcohol and tobacco are up by between 6% and 8%.

What this means for consumers: Expect increases in transport and lifestyle costs. Businesses in logistics, delivery, or hospitality should reassess their pricing models.

5. 💳 Two-Pot Retirement System Clarified

Government confirmed that further refinements to the two-pot retirement system are on the way. In particular, annual withdrawal limits will remain capped at R30,000, and withdrawals will be subject to PAYE.

What this means for individuals: Consider the tax impact before accessing retirement funds. We can help you calculate your net withdrawal and long-term implications.

6. 👨‍⚕️ Relief for Small Businesses and Professionals

Turnover tax thresholds for small businesses were slightly increased, and compliance relief measures for micro-enterprises were introduced, including simpler digital filing systems.

What this means for medical professionals and sole proprietors: If you’re running a practice or consulting firm, there may be new opportunities to streamline your tax structure and reduce admin burdens.

7. 📲 SARS to Expand Auto-Assessments and Digital Audits

SARS received a significant budget boost to expand the use of third-party data and automated assessments, especially targeting crypto traders, freelancers, and platform economy workers.

What this means for you: If you earn through side gigs, crypto, or foreign platforms, ensure full disclosure—SARS is watching more closely than ever.

🧠 Final Thoughts from Horizon Trading Solutions

The 2025 Budget Speech did not bring major shocks, but it reinforced government’s intent to tighten enforcement and broaden the tax base. The key theme is clear: compliance, transparency, and proactive planning are essential.

Whether you're concerned about bracket creep, VAT risk, or the evolving retirement system, Horizon Trading Solutions is here to guide you with:

✅ Personal tax reviews

✅ Business compliance checks

✅ VAT support and submissions

✅ Estate and trust tax optimization

✅ Retirement planning under the two-pot system

📞 Need help interpreting how the budget affects you? Contact us today for a tailored consultation and stay ahead of the changes.