The Finance Bill, 2025
In short
This bill is the government's annual money plan. It changes how much tax you pay on your salary, on goods you buy, and on money you earn online. Some everyday goods move from tax-free to taxed. Employers get new duties to report and remit deductions faster. The changes take effect on 1 July 2025 unless Parliament amends them.
Clause by clause
- Clause 4
Income tax bands
Adjusts the bands used to calculate PAYE. In plain terms: the amount deducted from your monthly payslip changes, with the largest effect on middle incomes.
- Clause 17
VAT on essential goods
Moves several items from zero-rated to standard-rated. In plain terms: shelf prices for those items go up by roughly the VAT rate.
- Clause 29
Digital services tax
Extends the tax to more online platforms and freelancers paid from abroad. In plain terms: if you earn online, a share of each payment is withheld.