BREAKING: Budget Speech 2025 postponed over alleged VAT increase

The National Budget Speech for the 2025-2026 fiscal year has been postponed indefinitely.

Finance Minister Enoch Godongwana was set to present the budget in Cape Town on Wednesday, 19 February which would have been the first under the Government of National Unity (GNU).

NATIONAL BUDGET SPEECH POSTPONED

Ahead of the speech, reports surfaced that the Value Added Tax (VAT) was set to increase by 2% to 17%. However, because of disagreements within parties who are part of the Government of National Unity (GNU), the budget was postponed.

The Economic Freedom Fighters (EFF) said they reject any increases in VAT which will place the burden of revenue generation on the poor!

Speaker of Parliament Thoko Didiza said party chief whips held a meeting and agreed to a postponement so that they can reach a consensus over contentious issues, including the reported VAT increase.

This is a developing story, The South African will add more information when it becomes available.

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