Finance Minister Enoch Godongwana’s Budget, which includes a proposed 0.5% VAT increase, faces significant opposition in Parliament, where the ANC no longer holds a majority. The DA, a key partner in the Government of National Unity (GNU), has rejected the Budget due to the tax hike, forcing the ANC to seek support from other parties. Godongwana and his team will present the fiscal framework and revenue proposals to parliamentary committees, which have the power to amend or reject the Budget under the 2009 Money Bills and Related Matters Act. With most opposition parties, except for the IFP, UDM, and Patriotic Alliance, rejecting the Budget, the ANC faces challenges in securing the necessary votes. President Cyril Ramaphosa and senior ANC members have defended the Budget as a difficult but necessary measure to address economic constraints, while opposition parties argue that alternative revenue options, such as a wealth tax, should be considered. The outcome of the parliamentary process will determine whether the Budget is passed or amended (News24).
Poll Question: Do you support the proposed 0.5% VAT increase in the Budget?
