[South Africa] Finance minister forced to delay budget after tax row

In South Africa, Finance Minister Enoch Godongwana has been forced to postpone unveiling the national budget following dramatic disagreements within the coalition government, BBC News reports.

Coalition partners derailed the minister’s budget after opposing his plan to raise VAT, which would have seen the prices of goods climb at a time when South Africans are struggling under the cost of living crisis.

Mr Godongwana is a member of the African National Congress (ANC). It was reportedly forced to enter into a coalition after losing a parliamentary majority in the 2024 elections.

The Finance Minister’s inability to table the budget shocked the nation; such a failure hasn’t happened since the end of white-minority rule in 1994.

The Democratic Alliance (DA) - the second-biggest party in the coalition - was among the most vocal critics of the proposed budget.

DA leader John Stenhuisen reportedly said the party could not in "good conscience" agree to a VAT increase from 15 per cent to 17 per cent because it would have "broken back the back of our economy".

VAT was last increased in 2018 from 14 per cent to 15 per cent.

The ANC's other coalition partners, including the Freedom Front Plus, said they were only told of the proposed hike before Godongwana was due to table the budget.

Mr Godongwana told journalists that the planned increase was mentioned in the cabinet in early February. He said the budget will now be tabled on March 12, following further discussions to iron out differences.

The opposition Economic Freedom Fighters (EFF) expressed dismay over the postponement, saying it was a "symptom of weak, indecisive, and opportunistic governance".

The DA reportedly dubbed the postponement a "victory", and said it would push for a budget that is "better for growth and employment".

Source: BBC News

(Quotes via original reporting)

In South Africa, Finance Minister Enoch Godongwana has been forced to postpone unveiling the national budget following dramatic disagreements within the coalition government, BBC News reports.

Coalition partners derailed the minister’s budget after opposing his plan to raise VAT, which would have seen the prices of goods climb at a time when South Africans are struggling under the cost of living crisis.

Mr Godongwana is a member of the African National Congress (ANC). It was reportedly forced to enter into a coalition after losing a parliamentary majority in the 2024 elections.

The Finance Minister’s inability to table the budget shocked the nation; such a failure hasn’t happened since the end of white-minority rule in 1994.

The Democratic Alliance (DA) - the second-biggest party in the coalition - was among the most vocal critics of the proposed budget.

DA leader John Stenhuisen reportedly said the party could not in "good conscience" agree to a VAT increase from 15 per cent to 17 per cent because it would have "broken back the back of our economy".

VAT was last increased in 2018 from 14 per cent to 15 per cent.

The ANC's other coalition partners, including the Freedom Front Plus, said they were only told of the proposed hike before Godongwana was due to table the budget.

Mr Godongwana told journalists that the planned increase was mentioned in the cabinet in early February. He said the budget will now be tabled on March 12, following further discussions to iron out differences.

The opposition Economic Freedom Fighters (EFF) expressed dismay over the postponement, saying it was a "symptom of weak, indecisive, and opportunistic governance".

The DA reportedly dubbed the postponement a "victory", and said it would push for a budget that is "better for growth and employment".

Source: BBC News

(Quotes via original reporting)