With just hours to go until the Minister of Finance delivers the much-anticipated 2025 National Budget Speech, a KPMG South Africa social media poll provides key insights into the expectations of business professionals across the country.
The survey, conducted on KPMG South Africa’s LinkedIn and Instagram platforms, revealed that a significant portion of respondents anticipate government spending cuts to be at the forefront of this year’s budget priorities.
The results reflect business sentiments with respondents favouring the following priorities:
- Government spending cuts – 30,7%
- Higher taxes to boost revenue – 27,6%
- No major changes expected – 27,6%
- More social spending support – 14%
Joubert Botha, executive director: head of tax and legal at KPMG South Africa, comments: “As South Africa navigates an increasingly challenging economic climate, both locally and globally, it comes as no surprise that business professionals foresee government spending cuts as a key budgetary measure. The fiscal deficit, coupled with subdued economic growth, necessitates decisive action to restore stability and ensure long-term sustainability.
“2025 may well be a year of tax consolidation with consequential adjustments rather than major announcements or proposals. This is mainly due to the recent tax announcements in the form of the global minimum tax and the two-pot retirement system.
“We anticipate that SARS will continue with the modernisation programmes including the development and use of artificial intelligence (AI) and technology solutions to enhance tax collection, compliance management, and dispute resolution.”
From a tax perspective, Botha highlights several key expectations:
- Increased funding for SARS – Likely to be allocated towards the compliance and collection drive, as well as tax modernisation projects, particularly leveraging AI and technology solutions for data collection and analysis.
- VAT adjustments – No major changes in the VAT rate are expected, but potential additional products are to be added to the zero-rated list.
- Corporate tax adjustments – Possible changes in exemptions, allowances, and incentives.
- Tax base protection – Continued efforts to close tax loopholes and prevent base erosion through amendments and adjustments.
- Personal income tax – Expected clarity on medical aid tax credits, including potential caps or reductions.
- Wealth tax considerations – Possible announcements or a discussion paper regarding a future wealth tax.
- International tax changes – Legislative adjustments anticipated to take into account the Global Minimum Tax Legislation.