Godongwana Defends His Vat Hike To Parliamentary Committees

Finance Minister Enoch Godognwana on Friday defended the budget he tabled this week providing for a one percentage point VAT increase staggered over two years to sceptical, sometimes hostile MPs as the battle to have it approved by parliament got underway.

Godongwana began his presentation to a joint sitting of the select and standing committees on finance and appropriation by noting that protests against cuts to the health budget had become commonplace.

The last march was to my office, he said.

The minister is on record as taking full responsibility for the decision to announce the first VAT increase since 2018. The Democratic Alliance announced minutes before it was tabled on Wednesday that it would not support the budget. The lack of support from the ANCs biggest coalition partner has raised the possibility of amendments to the budget for the first time in the democratic era.