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 African lawmakers have outlined plans that include a 0.5% VAT increase to fund additional health and defense spending. The rise in VAT aims to address cuts in US aid, return 9,300 jobs in healthcare,

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.