Inside The Budget Speech Postponement And Unpacking The Vat Battle

In an unprecedented move, South Africa's 2025 budget speech was postponed at the last moment, signalling deep divisions within the Government of National Unity GNU, Cape town Etc reports.

The postponement, which was announced just hours before Finance Minister Enoch Godongwana was set to deliver the budget, stemmed from intense disputes over a proposed two-percentage-point increase in Value-Added Tax VAT .

The delay has sparked widespread debate, with economic analysts warning of potential consequences for both South Africa's most vulnerable citizens and the nation's financial standing on the global stage.

The proposed VAT hike - from 15 to 17 - was a contentious measure aimed at boosting government revenue in the face of a staggering budget deficit.

Proponents, including senior figures within the African National Congress ANC, argued that the increase was necessary to fund crucial public services, including education, healthcare, and social grants.