VAT fight! Budget Speech postponed over tax hike disagreement
Political parties were not pleased to have been told at the 11th hour that the tabling of the 2025 budget would be postponed.
For the first time in 30 years of democracy, South Africa’s Budget Speech has been postponed. The shocking announcement was made at the very hour Finance Minister Enoch Godongwana was meant to deliver the speech.
National Assembly Speaker Thoko Didiza confirmed that proceedings would be delayed to 12 March 2025.
Didiza cited disagreements among Government of National Unity (GNU) partners as the main reason for the postponement. At the centre of the dispute is a controversial proposal to increase Value-Added Tax (VAT) by 2 percentage points.
DA TAKES CREDIT FOR BUDGET POSTPONEMENT
The Democratic Alliance (DA) has claimed victory, saying that intense pressure from the party forced the postponement. Speaking to the media, DA MP Mark Burk vowed to do everything possible to prevent the ANC from proceeding with the proposed VAT hike.
“If included in the budget, we are prepared to vote against it,” the DA said in an official statement on X. “The DA will keep fighting to protect South Africans from higher taxes and fewer jobs.”
The proposed VAT increase has sparked outrage, with critics arguing that it will place an even greater financial burden on already struggling citizens.
MALEMA SLAMS GOVERNMENT COLLAPSE
Economic Freedom Fighters (EFF) leader Julius Malema did not hold back his frustration, declaring that the government had “collapsed.”
“There is no government. It has collapsed,” Malema said. “This will be the legacy of the speaker – a parliament that fails to debate or adopt a budget.”
Malema stressed that the postponement was unprecedented and accused GNU leaders of failing to manage the country’s affairs properly.
CALLS FOR A FIRM DATE
Meanwhile, Build One South Africa (BOSA) leader Mmusi Maimane has called for a firm date to be set for the rescheduled Budget Speech. He warned that uncertainty around the country’s finances could have serious economic consequences.
Minutes after the postponement was announced, the rand was at 18.54 against the US dollar.
While some South Africans have supported the postponement, saying that taxes cannot just be hiked to make up for government’s failures and the decision to postpone was good, others said that announcing it at the eleventh hour was wasteful and disrespectful
WILL THE ANC PUSH AHEAD WITH THE VAT HIKE, OR WILL OPPOSITION PARTIES SUCCEED IN BLOCKING IT?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.
Subscribe to The South African website’s newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.