This decision is expected to provide relief to taxpayers amid the slow economic growth in the country.

The Minister said, “For 2025/26, the gross tax revenue is revised up by R21.3 billion compared to the estimate in the 2025 budget. Higher-than-expected net VAT, corporate income tax, and dividends tax collections improved the in-year outlook.

“As a result, the government has decided to withdraw the R20 billion in tax increases provisionally included in the May 2025 Budget. The improving fiscal position allows us enough room to withdraw the proposed tax increases, without putting fiscal sustainability or economic activity at risk.”

Darul Ihsan Media Desk