Finance Minister Enoch Godongwana has indicated that a decision on canceling proposed tax increases will be deferred until the 2026 budget. He stated that the outcome depends on continued revenue collection performance by the South African Revenue Service. The minister reported better-than-expected tax revenues of R19.7 billion, attributed to stronger household consumption and improved corporate tax income.
This improved fiscal position allows for additional spending, including allocations for rebuilding Parliament and preparing for upcoming local elections. Godongwana also announced a new three percent inflation target, intended to promote price stability, while warning that global conflicts could elevate costs for essential goods.
The government is intensifying its efforts against illicit trade to protect revenue, with recent actions including the suspension of licenses for non-compliant tobacco manufacturers. The minister also addressed the persistent problem of late payments to suppliers by government departments, which negatively impacts small businesses.
This improved fiscal position allows for additional spending, including allocations for rebuilding Parliament and preparing for upcoming local elections. Godongwana also announced a new three percent inflation target, intended to promote price stability, while warning that global conflicts could elevate costs for essential goods.
The government is intensifying its efforts against illicit trade to protect revenue, with recent actions including the suspension of licenses for non-compliant tobacco manufacturers. The minister also addressed the persistent problem of late payments to suppliers by government departments, which negatively impacts small businesses.
