Page 1 - 21 March 2025

Finance Minister Enoch Godongwana, delivered the rise from R2 185 to R2
2025 National Budget Speech on Wednesday (12 315 (+R130)
March). • Child support grants go In a significant move these customer categories release an in-depth analysis
Members of Parliament (MPs) have about three months up from R530 to R560 impacting South African arises from their respective of stakeholder comments,
to debate and pass the budget and its accompanying (+R30) electricity consumers, the financial years; Eskom’s along with a comprehensive
bills. In 16 days time they pace their first deadline. • Grant-in-aid rises from National Energy Regulator of financial year runs from April Reasons for Decision (RfD)
R530 to R560 (+R30) South Africa (Nersa) has t o M a r c h , w h i l e document, which will soon
Members from the National Assembly and the National a p p r o v e d n e w t a r i f f municipalities operate from appear on the Nersa website.
Council of Provinces will for the next several weeks Public sector wage: increases for Eskom, July to June.
engage in discussions about the budget. One of the • An increase of 5,5% for following a meeting on While the decision is poised
contentious points is the 0.5% percentage point value- state workers’ wages in March 11. This tariff adjustment is a to provide Eskom with the
result of the culmination of
n e c e s s a r y f u n d s f o r
added tax (VAT) increase. The initial 2025 Budget from 2025/26 and by the The decision marks an the sixth Multi-Year Price i n f r a s t r u c t u r e a n d
19 February, proposed a two percentage points inflation rate over the average increase of 12.74% Determination (MYPD6) operational costs, it also
increase in value-added tax (VAT) from 15% to 17% following two years. f o r E s k o m ’ s d i r e c t revenue determination places a heavier burden on
which was rejected by the GNU. This will cost an additional customers and 11.32% for process, which mandates c o n s u m e r s , a l r e a d y
R7.3 billion in 2025/26,
WHAT CHANGES: Other Changes: R7.8 billion in 2026/27 municipalities, set to that Eskom recover its full grappling with financial
reshape the electricity
strain due to rising costs of
allowed revenue within the
• VAT increase of 0.5% on 1 E s k o m D e b t R e l i e f : and R8.2 billion in expenditure landscape as specified financial year. living.
May 2025 and by the According to the finance 2027/28. the country grapples with The process involved Opponents of the tariff
same margin on 1 April minister Eskom is now in a Sin tax energy challenges. comprehensive stakeholder increase warn that the higher
2026. That is a 1% better financial position than • Excise duties on alcoholic The approved Eskom Retail engagement and conside- electricity prices may
increase over the next two in 2023 when the debt relief beverages, pipe tobacco Tariffs and Structural Adjust- ration of various comments e x a c e r b a t e e x i s t i n g
financial years. From 1 was originally announced. and cigars will be raised by ment (ERTSA) application that addressed key issues economic challenges for
May VAT will be 15.5% and As a result he has decided to 6.8% and on cigarettes will see the standard tariff such as the impact of the many households.
16% as from 1 April 2026. simplify the final phase of the and vaping products by i n c r e a s e f o r E s k o m approved Retail Tariff Plan As South Africa continues to
• An extension of the zero- debt relief. The last R70 4.8% from 1 April 2025. customers come into effect (RTP), the necessity for a navigate its energy crisis, the
rated food items. This will billion debt takeover will now Fuel levies: on April 1, remaining in long-term strategy to tackle implications of these tariff
include canned vege- be replaced with R40 billion • General fuel levy no place until March 31, 2026. cross-subsidies, the different increases will not only affect
tables, dairy liquid blends, in 2025/26 and R10 billion in change this year. In contrast, municipal cost structures at play, and electricity bills but potentially
and organ meats from 2028/29. Godongwana said customers will face a slightly Eskom's dominant market influence the broader
sheep, poultry and other that t his would result in a • Road Accident Fund lower increase starting on position. economy, energy policy, and
(RAF) levy and the
animals. saving of approximately R20 July 1. The differentiation in As part of this initiative, consumer behaviour in the
billion for the government. customs and excise levy -
• Income Tax: Personal no change. percentage increases for Nersa has promised to coming months.
income-tax brackets will Grant Increases: • From 2 April the carbon With thanks to https://businesstech.co.za
not be adjusted to • The old age grant will go fuel levy will rise by over
account for inflation. This up from R2 185 to R2 315 366% by 3 cents per litre,
means that taxpayers will (+R130) bringing the total to 14
experience inflationary • Grants for war veterans cents per litre for petrol
bracket creep. South increase to some R2 205 and 17 cents per litre for
Africans who received an from R2 335 (+R130) diesel.
inflation-based or higher • Disability grants go up
salary hike in 2025 may from R2 185 to R2 315 Government spending:
now be in a higher tax (+R130) • Will increase by 5.6%
bracket and pay more These are the proposed
taxes. The proposals for • The Foster care grant changes that we could see.. Mid-month data from the and a firmer rand. litre
personal income tax will increases from R1 180 to We will have wait and see, Central Energy Fund (CEF) These are the projections at The CEF does not present
take effect on 1 March R1 250 (+R70) but VAT will rise to 15,5% as shows that South African mid-month: daily snapshot data for LP
2025. • Care dependency grants from 1 May. motorists are in store for Gas, so it is not currently
good news next month, with • Petrol 93: decrease of 82 possible to give the expected
diesel and petrol showing cents per litre price in April.
sizeable over-recoveries. • Petrol 95: decrease of 96
cents per litre It must be noted that the
Petrol prices show an over- daily snapshots from the
recovery of between 82 and • D i e s e l 0 . 0 5 % CEF are not entirely
96 cents per litre, while (wholesale): decrease of predictive of the final fuel
diesel prices show an over- 89 cents per litre
Janique was admitted to hospital (Mediclinic) on recovery of about 90 cents price adjustments, and the
13 March to have her trachea removed. She went per litre. • D i e s e l 0 . 0 0 5 % numbers may change by the
into surgery at 10:30 AM to have her trachea (wholesale): decrease of end of the month.
removed. The over-recoveries are 90 cents per litre This was seen for prices in
driven by a lower oil price • Illuminating paraffin: March, where the mid-
Unfortunately, the operation was unsuccessful due relative to February 2025
to a complication. The cartilage had been decrease of 85 cents per month projections were for
damaged by the trachea, requiring another an increase but ended up
being a small cut as market
surgical procedure in two months.
If you would like to support conditions shifted.
This was a huge disappointment, especially for the family, Janique's T h e D e p a r t m e n t o f
young Janique (and her family). It would have been Petroleum and Mineral
a huge milestone in her life, enabling her to live a banking details are: Resources only announces
more normal life.
Miss J Venter, the final price a few days
We believe that this is just a temporary setback and before the implementation
that the trachea will be removed in two months Account no: 1690082273, date.
time. In the meantime, please keep praying for this Savings, CAPITEC. Ed: This price does not
brave little fighter and her family. reflect any tax increases.