South African lawmakers are set to review the 2025 budget amidst a contentious plan for a VAT hike. A revised budget presented has been rejected by major parties, creating uncertainty about its passage before the fiscal year’s end. The ANC must garner support from other parties to proceed, with significant implications for government funding and taxation policies.
In the coming weeks, South Africa’s lawmakers will closely examine the 2025 budget, amidst discussions regarding a proposed increase in value-added tax (VAT). Finance Minister Enoch Godongwana presented a revised budget on March 12, which has faced rejection from major political parties, notwithstanding a scaled-back VAT increase from two to one percentage point over two years. As a result, there is uncertainty surrounding the budget’s passage before the fiscal year concludes on March 31.
The upcoming legislative discussions will significantly shape South Africa’s fiscal landscape, particularly regarding the proposed VAT hike. The Finance Minister’s engagement with opposition parties and the flexibility in amending the budget will be crucial for achieving a consensus. Failure to pass the budget by the fiscal year’s start could lead to limitations in government funding unless parliamentary approvals are secured.
Original Source: www.tradingview.com
