🔍 What to Expect from the 2025 South African Budget Speech 3.0 - Key Areas to Watch

The budget speech will be held on Wednesday in Capetown

The countdown has begun. On Wednesday, 22 May 2025, Finance Minister Enoch Godongwana will deliver the National Budget Speech, outlining the government’s spending plans, tax proposals, and economic strategy for the year ahead. This annual address is more than just a fiscal update—it has real implications for how South Africans earn, save, and invest.

At Horizon Trading Solutions, we’ll be closely monitoring the announcements so we can guide our clients through any changes. Here's a breakdown of the top areas to watch and what they could mean for individuals, businesses, and investors.

1. 💸 Will Personal Income Taxes Increase?

There is ongoing speculation that income tax brackets may be adjusted to account for inflation or to boost government revenue. High-income earners in particular may be impacted.

What to watch:

• Adjustments to tax brackets

• Possible increase in top marginal rates

• Medical aid or other deduction reform

2. 🧾 VAT: Will There Be a Rate Hike?

After much debate in 2024, VAT remains a sensitive topic. While a rate increase is unlikely now, adjustments to zero-rated goods or increased VAT enforcement could still be on the cards.

What to watch:

• Expanded zero-rated items

• Crackdowns on non-compliant vendors

• Clarifications for digital goods or services

3. 👩‍⚕️ Relief for Small Businesses & Professionals

In a time of economic strain, many are hoping for relief measures aimed at SMMEs and professionals like doctors and consultants. Incentives, tax breaks, or reduced red tape could be introduced.

What to watch:

• Updates to the small business turnover tax

• Section 12J replacement incentives

• New grant or compliance assistance schemes

4. 🏦 Retirement Reform: What’s Next for the Two-Pot System?

The two-pot retirement system came into effect in March 2024, but adjustments are expected as the framework matures. This may include clarity on early withdrawals, annual limits, or tax relief for retirement savers.

What to watch:

• Final rules for vested pots

• Adjustments to withdrawal thresholds

• Tax treatment of partial access

5. 🚗 Sin & Fuel Taxes – Another Hike?

Expect increases in fuel levies, alcohol, and tobacco taxes. These are common go-to revenue boosters and often affect the cost of living more broadly.

What to watch:

• Petrol price projections

• Transport-related rebates (for businesses)

• Excise increases and their inflationary impact

6. 📈 SARS Enforcement and Digital Tax Tools

The budget may allocate more resources to SARS, improving its ability to track crypto, foreign income, and undeclared earnings via digital platforms and third-party data.

What to watch:

• SARS budget allocation

• Tech upgrades for audits and tracking

• More auto-assessments and penalties for non-compliance

✅ What This Means for You

Whether you're a salaried employee, a small business owner, or managing a trust, the 2025 Budget could bring significant changes. At Horizon Trading Solutions, we’ll be unpacking the announcements in real time and offering tailored advice for:

• Personal tax planning

• Business and payroll structuring

• VAT and compliance updates

• Estate and trust tax implications

📣 Stay Informed

Follow us this week for a post-speech breakdown highlighting the most important changes and how you can act quickly to stay compliant—and save.

If you need help interpreting the impact of the budget on your finances or business, get in touch with Horizon Trading Solutions today.