SA Politics Thread Part 10 : The GNU Has Crashed

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No more VAT Increase as the GNU retreats from its hasty & ill-advised decision to hike VAT by 0.5% from 1 May 2025... 🤡😛

South Africa withdraws planned VAT hike after political pushback - Reuters​

South Africa will not increase its value-added tax (VAT) from May 1, the finance ministry said on Thursday, after the proposed hike faced opposition from political parties and caused friction within the coalition government.

The National Treasury had planned to raise VAT by 1 percentage point spread over two years, as part of revenue measures for the 2025 national budget.

But the two biggest parties in the coalition government, the African National Congress and the Democratic Alliance, have been at odds over the proposal to raise VAT by 0.5 percentage points on May 1 and another 0.5 points next year.

VAT will be maintained at 15%, the ministry said in a statement, adding that Finance Minister Enoch Godongwana will introduce a revised version of the Appropriation Bill and Division of Revenue Bill within the next few weeks.

"The decision to forgo the increase follows extensive consultations with political parties, and careful consideration of the recommendations of the parliamentary committees," the ministry said.
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LOL ASA had nothing to do with it. was all DA/EFF. ANC saw how they got savaged in the court
ASA voted for it

Still waiting to see how they are going to delay implementing it so they can reverse it
The people voted for the increase , and the court questioning was quite clear that increase / decrease was a peoples decision.
So the Finance minister cannot just "delay" the implementation as that would be executive overreach untill he can get a new bill in to be voted on which wont be by the 1st

I think the court judgement is going to be interesting as if they find in DA/EFF's favour then the whole process from Committee/NA vote etc is all null and void and all this is a non starter anyway
 
South Africa might just lose/change a Finance Minister and the 2nd biggest GNU partner after this.
 
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