For the first time in history, the 2025 National Budget Speech has been postponed due to disagreements over an alleged 2% VAT increase. Finance Minister Enoch Godongwana was set to table the budget in Cape Town on Wednesday, 19 February, which would have been the first under the Government of National Unity (GNU). The postponement came after reports surfaced that the Value Added Tax (VAT) which is currently 15% was set to increase by 2% to 17%.
For the first time in history, the 2025 National Budget Speech has been postponed due to disagreements over an alleged 2% VAT increase.
Although the Democratic Alliance which is part of the ANC-led GNU, welcomed the postponement, it rejected the 2% VAT increase. “The last-minute postponement came about because of the failure by the ANC, and specifically Finance Minister Enoch Godongwana’s failure to engage meaningfully with the alternative proposals tabled by the DA. Following our defeats of the ANC’s plan to hike VAT, we will now fight with the same vigour to introduce a new budget that is anchored in growing the economy, rather than increasing taxes or debt,” the Minister of Agriculture said.
“It is going to be your legacy Speaker that during your tenure Parliament, could not debate and adopt the budget. We are saying to you you’re denying this body an opportunity to be receiving a budget, debate it, accept it or reject it. You are now subjecting the budget of South Africa to party politics when it is supposed to be above party politics,” he said.
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