Stage seems set for Godongwana’s budget approval

All eyes are on the National Assembly as parliamentarians gear up for the much-anticipated budget vote.

The proposed Value Added Tax (VAT) increase has been a bone of contention with various political parties making submissions against it.

The passing of the country’s national budget has been delayed over a number discrepancies.

In February, the country experienced one of the most unprecedented and historic moves when the tabling of the budget was postponed to March.

National Treasury has proposed a staggered VAT increase of 0.5% this year and 0.5% next year.

The ANC found itself between a rock and a hard place after its major GNU partner, the DA, rejected the budget, saying it will vote against it.

The country’s majority party has resorted to approaching several parties outside of the GNU including, ActionSA, the EFF, BOSA and the MK Party in a bid to garner support.

ActionSA has agreed to play along, throwing its weight behind Godongwana’s budget proposal.

The party has, however, put down strict conditions, including demanding an adjustment of personal income tax brackets to ensure that they are in lines with the inflation rate.

The party’s Atholl Trollip says they’ve ensured that substitute revenue proposals and corresponding expenditure savings are considered to offset the R28 billion shortfall from scrapping the tax increases.

The EFF and DA are fuming.

♦️Must Read♦️

The EFF Proposed Amendments To The Fiscal Framework And Revenue Proposals.

We propose an increase in Corporate Income. We propose an increase in Corporate Income Tax, by 1.5 percentage points in the 2025/2026
financial year, and by a further 2 percentage points in… pic.twitter.com/kGmr8jTRv0

— Economic Freedom Fighters (@EFFSouthAfrica) April 1, 2025

‼️ Fact: VAT will increase on 1 May, don’t let the ANC and ActionSA lie to you. They have now voted to adopt the current ANC VAT budget and fiscal framework in Parliament.

This will increase prices and push more people into poverty. Watch this important update for more info.🔽 pic.twitter.com/cElvYlXoyC

— Democratic Alliance (@Our_DA) April 1, 2025

In addition to the DA wanting to defund the SA National Defence Force, closing down the NYDA and reversing transformative legislation amongst other proposals.

The Chief Whip was right, DA posture is nothing but political point scoring. The DA is one of 10 parties in the GNU.… https://t.co/FpDtCbdac4

— Khusela Diko🇿🇦 (@KhuselaS) April 1, 2025

ANC secretary general, Fikile Mbalula, says the proposed staggered VAT increase of 0.5% will not be permanent.

The ANC SG says as the economy improves, the proposed VAT will be withdrawn.

The Joint Committees on Finance has meanwhile approved Godongwana’s fiscal framework, setting the stage for its adoption in the National Assembly on Wednesday.