Why does this matter to me?

National Treasury’s decision to reverse the VAT hike raises key questions about the 2025/26 Budget and how the funding gap will be filled. Since February’s Budget, both global and domestic growth projections have worsened, adding pressure. With VAT off the table, a new Budget is likely unavoidable. This could, however, open the door to long-overdue cuts in wasteful spending and potentially strengthen the Government of National Unity by encouraging genuine power-sharing.