Some updates on South Africa's government budget under the new President Ramaphosa. Finance Minister Malusi Gigaba said on Wednesday will lift value added tax rate from 14 percent to 15 percent to cut and stablize deficit.

It's the first time for the South African government to do so in 25 years. The tax measures will be effective from April 1st and will generate an extra 3 bln US dollars in tax revenue for the next two fiscal years. Gigaba also said the country's budget deficit is now narrowing to 3.5 percent of GDP, and would maintain at 3.6 percent throughout the two years to come. Taxes on luxury goods is also being increased from 7 percent to 9 percent. Earlier analysis said tax raise this time is going to add huge burden to the livelihood of South Africans, especially the middle- and low-income groups.