South Africa's National Treasury on Wednesday proposed a smaller hike in value-added tax in a revised budget aimed at smoothing divisions in the ruling coalition, but uncertainty remained over whether it would get the support in parliament to pass.

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.

While think tanks and unions call for a wealth tax to plug the gaps in South Africa’s budget, experts point out that the country’s richest are already taxed heavily.