The proposed 2% VAT increase has sparked intense debate, with opposition parties and some cabinet members speaking out against it, leading to the indefinite postponement of the budget speech.
(The Post News)- The 2025/26 budget speech has been postponed due to conflicts within the Government of National Unity (GNU) over a proposed 2% Value-Added Tax (VAT) hike. Finance Minister Enoch Godongwana was unable to deliver the national budget address as a result of the disagreements.
The budget address was postponed because of the protests, which raised questions about the government’s fiscal policy decisions in light of the continued economic difficulties. According to parliamentary speaker Thoko Didiza, the budget speech has been “delayed indefinitely” due to ongoing problems within the GNU.
John Steenhuisen, the leader of the Democratic Alliance (DA), has publicly opposed the proposed VAT increase, saying it is unworkable given South Africa’s difficult economic circumstances. This criticism underscores the ongoing fiscal policy tensions within the ruling coalition as the nation navigates its economic recovery.
Economic Freedom Fighters (EFF) Commander in Chief, Julius Sello Malema, stated, “You can’t come here and say the parties in the executive do not agree. We don’t have parties in the executive; we have the Executive.”
Mayor Geordin Hill-Lewis claimed that the DA warned about the VAT increase and would not support it because it hurts the poor. “We stood our ground and won,” he stated on Facebook. However, Minister of Sports, Arts, and Culture, Gayton McKenzie, replied that this claim was untrue. He stated that the majority of Cabinet members opposed the budget, and that the Minister of Justice and Minister of Electricity were the first to speak out against it. McKenzie emphasized that the discussion was not a fight, but rather a demonstration of the GNU’s leadership and ability to listen to different perspectives without party politics.
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