South Africa's budget may be tweaked further as more talks between political parties will try to overcome differences over a contentious plan to raise value-added tax, the country's finance minister told Reuters.

Finance Minister Enoch Godongwana delivered the 2025 National Budget Speech on Wednesday (12 March). The budget addressed several key points, including the country’s current economic status, growth projections, substantial debt servicing costs, proposed increases in VAT and sin taxes, and the continuation of the social relief grant.

South Africa’s 2025 budget is a cautious step toward fiscal stability, with debt peaking at 76.2% of GDP in 2025-26 and a narrowing deficit. For employees, it offers short-term respite but lacks the ambition to transform lives.

South Africa's finance minister unveiled Wednesday a budget with a smaller increase in value-added tax than previously proposed

South Africa’s National Treasury on Wednesday proposed a smaller hike in value-added tax in a revised budget aimed at ending deadlock within the coalition government, but it was not clear if it would get the support in parliament to pass.

South African Finance Minister Enoch Godongwana may have to make changes to the national budget after parties that control more than half the seats in parliament rejected his plans to raise taxes.

Explore how South Africa's proposed 16% VAT rate stacks up against global standards and what it means for consumers.