Steenhuisen confirms disagreements over VAT among reasons for budget speech postponement
Finance Minister Enoch Godongwana was set to deliver the speech at 2pm on Wednesday afternoon, but internal conflict within the government of national unity (GNU) caused a delay.
FILE: Finance Minister Enoch Godongwana at the Land Bank media briefing, on its conclusion on the liability solution with its lenders, 9 September 2024. Picture: GCIS
JOHANNESBURG – Democratic Alliance (DA) leader John Steenhuisen has confirmed that disagreements over value-added tax (VAT) are among the reasons for the postponement of the budget speech.
Finance Minister Enoch Godongwana was set to deliver the speech at 2 pm on Wednesday afternoon - but internal conflict within the Government of National Unity (GNU) caused a delay.
It's understood Godongwana planned to propose a 2% point increase in VAT, raising it to 17%.
Speaking to reporters outside parliament, Steenhuisen said his party was not prepared to support the VAT hike.
“VAT was of course one of the matters and I think that has been played out in the media over the last few weeks. It was obviously a key point for me if I wear my hat as the leader of my party. We couldn’t in good conscience support a 2% increase given the current economic circumstances in South Africa.”