This follows disagreements on proposed VAT increase, that would have gone up to 17 percent from 15 percent.
As a result, Parliament decided to postpone the Budget Speech to March 12, 2025.
The postponement is the first in the country, under the Government of National Unity.
As expected various parties agreed with rescheduling and some did not.
Unfortunately, this will affect the economy and markets will act negatively.
“This is sound finance fiscus”, says Agriculture minister John Steenhuisen, who indicated this will give all the parties in the GNU more time to reflect on this matter.
EFF’s – Julius Malema, lamented this has collapsed the Government infront of SA, indicating they reject the VAT increase.
“No budget means no Parliament and it means the poor will be severely impacted,” says Malema.
Instead Gvt should target the wealthy and corporates who evade tax, and not compromise on the poor, continued Malema.
“Other countries are decreasing corporate tax and SA can’t afford to,” Malema pointed out.
The decision was not taken lightly, says Speaker, Thoko Didiza on the postponement.
Finance Minister Enoch Gondongwana, said before March 12, an agreement would have been reached and this move will not affect the G20 Meeting, he told media in Cape Town, today.
On the leakage he said: “Two weeks ago during Cabinet meeting, the figure was only proposed, but it seems the same people who were in attendance leaked the figure to the media,” says Godongwana, indicating this is not a thankful job.
Duncan Pieterse- Treasury DG- says they’re planning for the Budget to be tabled on March 12, and the fact that our rand is best performing currency for the past twelve months, shows resilience ahead of the Budget.
