Budget 3.0: VAT Increase Out, Fuel Levy Hikes In
By BVK Group | 05 Jun 2025
Last month’s Budget 3.0 withdrew the contentious proposed VAT changes. This resulted in inflation-linked fuel levy increases of 16c for petrol and 15c for diesel, from 4 June.
Other tax proposals from March’s Budget – including static personal tax thresholds, reduced transfer duties, and sin tax increases – remain unchanged.
The tax measures contained in Budget 3.0 will raise an additional R18bn in 2025/26. A further R20bn in tax measures are postponed to Budget 2026 – unless SARS collects an extra R35bn in uncollected taxes, for which Budget 3.0 allocated an additional R4bn in funding.
(The information provided in this article does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available are for general informational purposes only)
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