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.

Take advantage of tax-free savings accounts, medical aid deductions, and retirement contributions to reduce taxable income

South Africa's Finance Minister, Enoch Godongwana, has announced a 0.5% increase in Value Added Tax (VAT) for the current financial year, with an additional 0.5% hike planned for 2026. This measure aims to address urgent revenue needs amidst ongoing political negotiations within the Government of National Unity (GNU).

Finance Minster Enoch Godongwana Wednesday tabled his budget for the for the 2025/2026 financial year, a month after it was postponed following a fall-out with the ANC’s biggest coalition partner over value-added tax hikes.

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.

Business leaders have warned that South Africa cannot get complacent thinking that the tabled budget on Wednesday (12 March) is a done deal, saying that it has not been passed, and great uncertainty lies ahead.

South Africa's national budget stands at a crucial crossroads between social welfare and economic growth. This analysis explores how strategic fiscal planning could transform the nation's future, balancing social responsibilities with competitive advantage in the global market.

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.