South Africa’s Finance Minister Enoch Godongwana announced on Wednesday that he will unveil a new budget on May 21 that will include adjustments to revenue and expenditure forecasts following the cancellation of a highly contentious increase in value-added tax (VAT).
During a briefing, the minister stated that comprehensive discussions would take place with all political parties within the coalition government, along with the cabinet’s endorsement, before the revised budget is submitted to parliament next month.
The last instance of a VAT increase occurred in 2018. Many political parties and labour unions expressed opposition to any additional hike, arguing it would disproportionately affect the poor, even with attempts to protect them through a list of “zero-rated” items.
