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BL Premium reports that parliamentary speaker Thoko Didiza announced on Wednesday afternoon that the 2025 national budget speech had been “delayed” to 12 March, an unprecedented move in post-apartheid SA.
The decision came after the government of national unity (GNU) partners failed to agree on hiking the VAT rate from 15% to 17% as the budget proposed, and cabinet failed to sign off on it on Wednesday. The Democratic Alliance (DA) has been resolute in its opposition to a VAT increase. The delay came hours after it was reported that the Treasury would increase social grants by above inflation, freeze the fuel levy and increase the basket of zero-rated goods to shield the poor from the decision to hike VAT for only the second time in democratic SA. DA leader John Steenhuisen said the last-minute postponement came about because of the failure by the ANC and Finance Minister Enoch Godongwana “to engage meaningfully” with the alternative proposals they had tabled. He said the DA opposed a proposed increase in VAT because it would “break the back” of SA’s economy. “We will now fight to introduce a new budget that is anchored in growing the economy, rather than increasing taxes or debt,” he said. IG senior market analyst Shaun Murison said: “The delay introduces uncertainty into the economic outlook and raises questions about the GNU’s ability to reach consensus on critical fiscal policies.”
- Read the full original of the report in the above regard by Hilary Joffe at BusinessLive (subscriber access only)
Get other news reports at the SA Labour News home page