South Africa: 2025 budget speech announces VAT increase and tax measures
The South African Revenue Service published the 2025 budget speech, outlining key tax and social policy updates. The measures include changes to VAT rates, tax brackets, grants, and transfer duties.
Key measures announced:
- VAT rate changes: The standard VAT rate will increase to 15.5% from 15% for the 2025-26 tax year, effective May 1, 2025. It will further increase to 16% for the 2026-27 tax year, effective April 1, 2026.
- Zero-rated food expansion: The list of VAT zero-rated essential food items will be expanded to include canned vegetables, dairy liquid blends, and specified organ meats.
- Social grant increases:
- Old age and disability grants will rise to 2,315 rand (US$126) from 2,185 rand (US$119), starting in April.
- Child support grants will increase to 560 rand (US$30) from 530 rand (US$28).
- Income tax brackets: Individual income tax brackets, rebates, and medical tax credits will remain unchanged.
- Transfer duty adjustments: Transfer duty rates on property acquisitions not subject to VAT will be adjusted, effective April 1, 2025.
The budget outlines fiscal policy adjustments for the coming years, with tax changes and social measures set to take effect in 2025 and 2026.
VAT/GST rates 2024 in Africa
| Country | Standard VAT/GST Rate | Reduced Rates |
| Algeria | The standard sales tax (VAT) rate is 19%. | A reduced rate of 9% applies to certain industries |
| Egypt | The VAT rate is 14% | 5%, 10% |
| Equatorial Guinea | The standard VAT rate is 15% | 6% |
| Ethiopia | The standard VAT rate is 15% | |
| Mauritania | The standard VAT rate is 16% | |
| Mauritius | The standard VAT rate is 15% | |
| Morocco | The standard VAT rate is 20% | 10% |
| Nigeria | The standard VAT rate is 7.5% | |
| South Africa | The standard VAT rate is 15% | |
| Tanzania | The standard VAT rate is 18% | |
| Tunisia | The standard VAT rate is 19% | 7%, 13% |
| Uganda | The standard VAT rate is 18% |