The 2025 national budget speech in South Africa has been postponed to March 12th due to disagreements within the cabinet regarding a proposed 2% VAT increase. The postponement, announced by Finance Minister Enoch Godongwana, comes after discussions revealed concerns from various parties, including ANC ministers, about the potential impact of the VAT hike on the economy and public welfare.
Finance Minister Enoch Godongwana announced the postponement of the 2025 national budget speech, originally scheduled for February 19th, to March 12th. This decision, made by the cabinet, was not solely due to the Democratic Alliance's (DA) opposition to the proposed 2% VAT hike, as initially suggested by some.
Minister in the Presidency and Cabinet spokesperson Khumbudzo Ntshavheni clarified that disagreements regarding the VAT increase stemmed from various political parties, including ANC ministers, during a pre-budget speech cabinet meeting. Ntshavheni emphasized that the postponement was necessary to allow for comprehensive cabinet deliberations on the budget and to address concerns raised by various parties. She highlighted the need to balance fiscal responsibility, economic growth, and the protection of public interests, particularly those of vulnerable populations. Godongwana, addressing the media, stated that the cabinet's decision reflected a desire to reach a consensus on the budget's content before presenting it to the National Assembly. He explained that the initial budget proposal, including the VAT increase, was presented to the cabinet two weeks prior. However, specific details were withheld until the last meeting due to market sensitivity. He emphasized that the budget is ultimately a statement of the cabinet's collective decision and that extensive discussions within the cabinet were crucial for its finalization. Godongwana also confirmed that the postponed budget speech will be tabled on March 12th, allowing for further consultations and revisions
SOUTH AFRICA BUDGET VAT INCREASE POSTPONMENT CABINET ECONOMIC GROWTH PUBLIC WELFARE DEMOCRATIC ALLIANCE ANC FINANCE MINISTER
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