Budget Highlights 2025/2026

Written on 12/03/2025
Profmark Team
  • VAT
    • The VAT rate increases by a 0.5 percentage point from 15% to 15.5% on 1 May 2025 and by a further 0.5 percentage point on 1 April 2026.
    • VAT zero-rating introduced on specific edible offal (from sheep, poultry, goats, swine and bovine animals), unflavoured dairy liquid blends and specific canned and bottled vegetables to assist poor households.
  • Personal income tax
    • Personal income tax rebates and tax brackets are not adjusted.
  • Medical tax credits
    • No change to the medical tax credits.
  • Excise duties
    • Increase in excise duties of 6.75% on alcohol products, and between 4.75% and 6.75% on tobacco products.
  • Fuel and RAF levies
    • No change to the general fuel levy and road accident levy.
  • Renewable energy allowance
    • The 125% renewable energy asset allowance is not extended beyond its current end date of 28 February 2025.
  • Employment tax incentive
    • Effective 1 April 2025, the formula to calculate the incentive and the eligible income bands will be adjusted to maintain the maximum value of the incentive at R1 500 per month in the first 12 months and R750 per month in the second 12 months.
  • Diesel rebate
    • From 1 April 2026 farming, mining and forestry businesses will qualify for diesel rebate on all eligible diesel purchases (currently 80%).
  • Transfer duty
    • The transfer duty table is adjusted by 10% to compensate for inflation.