GNU at loggerheads over VAT increase

CAPE TOWN - Political parties within the Government of National Unity (GNU) are at loggerheads over the 2025 Budget speech.

Some of the disagreements include a two-percentage point VAT increase.
This saw the postponement of the budget speech to the 12 March.

Speaking after the postponement, DA leader John Steenhuisen, said the VAT increase was a point that they could not support given the country’s current economic climate. 


"We need to look at more innovative ways that are more pro-growth to be able to get the economy moving, to create jobs and to end poverty. We need a budget that speaks to those key objectives," he said.

Steenhuisen, who was in support of the postponement, said the GNU intends to come back to Parliament with a budget that reflects a growth and jobs agenda, while also considering the plight of South Africans amid high unemployment and the cost-of-living crisis.


Meanwhile, ANC Secretary-General, Fikile Mbalula, said this was an appropriate decision.


This is to allow for consensus among political parties on interventions that need to be made to take the economy forward.

 

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