The South African Parliament reportedly approved the 2025 Budget on 2 April 2025, including the proposed increase in the VAT rate. As previously reported, it was announced as part of the 2025 Budget that the VAT rate will be increased from 15.0% to 15.5% with effect from 1 May 2025, with a further increase to 16.0% from 1 April 2026. Other tax budget measures will be tabled later in the year.