Budget Speech 2025: 'Unlikely to see any big tax increases' – Old Mutual

Africa Melane interviews Faisal Khan, Head of Tax Advisory and Special Projects at the Old Mutual Group.

Listen below:

Finance Minister Enoch Godongwana will deliver his 2025 Budget Speech in the National Assembly on Wednesday (19 February), with all eyes on the Treasury’s next steps.

South Africa is grappling with a R300 billion budget shortfall and, according to Khan, most of the required funds will be sourced through borrowing, with only a small portion expected to come from tax increases.

Therefore, he suggests that a significant rise in taxes is unlikely in this Budget.

"We're not expecting any big tax increases coming through in the Budget Speech."

- Faisal Khan, Head of Tax Advisory and Special Projects – Old Mutual Group

South Africa’s debt-to-GDP ratio is projected to peak at 75.5% in 2025/26, and Khan emphasises the urgent need to see the country’s debt begin to stabilise and gradually decline.

In terms of economic growth, Khan argues that the government must focus on addressing the challenges facing Eskom and Transnet, which he describes as the 'low-hanging fruits' of reform.

Both entities have been a major drag on growth, and resolving their issues, Khan says, would boost business confidence and attract much-needed investment.

"We need to look at how we restructure the economy to encourage growth."

- Faisal Khan, Head of Tax Advisory and Special Projects – Old Mutual Group

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