Godongwana to table third 2025 budget after VAT U-Turn

Finance Minister Enoch Godongwana will present a third version of the 2025 national budget on May 21, following intense pushback against a proposed VAT hike.

Initially planned to rise from 15% to 17%, the increase was first moderated to 16% before being scrapped entirely due to pressure from coalition partners and public opposition.

The reversal has left a R75 billion revenue gap, forcing the Treasury to explore alternative funding sources or spending cuts to preserve fiscal stability. The revised budget will be tabled against a backdrop of fragile coalition politics and a modest economic growth forecast of 1.9%.