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south africa budget

south africa budget tax policy
Business

South Africa’s Budget Tightrope: Tax Strategies, Fuel Levies, and the Cost of Policy Choices

by Chloe de Kock
May 18, 2025

South Africa’s budget faces tough challenges like high debt and slow growth, forcing the government to find smart ways to raise money without upsetting people too much. Instead of raising VAT, it leans on higher taxes on alcohol, tobacco, and fuel to bring in cash. These moves help fill the budget gap but also make life harder for many ordinary South Africans, who feel the pinch in daily costs. The government also uses “bracket creep,” quietly taxing more as incomes rise with inflation. Balancing the budget while keeping the country stable and fair is a delicate and ongoing struggle.

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