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Finance Minister Godongwana's delayed 2025 budget introduces a phased 1% VAT increase, the third in 34 years. This article examines how this contentious decision will impact South Africa's poor, middle class, and businesses, while exploring alternative approaches to broaden the tax base through job creation and economic growth.
The MK Party has strongly condemned the National Treasury's proposed 0. 5% VAT increase, calling it a 'cruel and calculated attack' on the working class. As parliamentary tension rises over the budget vote, MK Party representatives have vowed to reject any form of VAT increase and warned of potential election manipulation through digital IDs.
Parliamentary finance committees met to discuss South Africa's economic policies, with COSATU strongly opposing the proposed VAT increase that they argue will harm working-class families already struggling with inflation and high unemployment.
The ANC faces significant political risks as it pushes for a VAT increase despite widespread opposition from major parliamentary parties.
Credit ratings agencies Moody's and Fitch have challenged South Africa's National Treasury projections, warning that government debt will stabilise at higher levels than anticipated in the 2025 Budget. The agencies predict debt-to-GDP ratios could reach 80%, while political tensions within the GNU threaten budget implementation
"Business and civil society groups express concerns over the government's planned VAT increase, warning of its potential impact on low-income households and economic activity.
The government has defended its decision to raise VAT by arguing that alternative revenue-raising measures, such as increasing corporate or personal income tax would do more harm than good.
South Africa's latest budget speech reveals bold steps to address fiscal challenges, including VAT reforms and structural changes aimed at stimulating economic recovery.
The National Treasury has allocated R11 billion to facilitate early retirement for 30 000 public servants over two years, aiming to reduce wage costs and rejuvenate the public service sector.
The National Treasury has allocated R11 billion to facilitate early retirement for 30,000 public servants over two years, aiming to reduce wage costs and rejuvenate the public service sector. Finance Minister Enoch Godongwana announced the initiative will target employees over 55, with expected annual savings of R7. 1 billion
South Africa's National Treasury forecasts 1. 9% economic growth for 2025, as Finance Minister Godongwana unveils ambitious structural reforms and infrastructure investments to combat a decade of economic stagnation. Will these measures be enough to drive sustainable recovery?
Finance Minister Enoch Godongwana presents a transformative 2025 Budget featuring gradual VAT increases and significant expenditure adjustments to address South Africa's R5. 69 trillion debt burden. The comprehensive plan includes R232. 6 billion allocation over the medium term, targeting sustainable growth and economic stability.
As South Africa faces a critical R60 billion budget shortfall, Finance Minister Enoch Godongwana navigates controversial proposals including VAT increases and welfare cuts. With national debt exceeding 75% of GDP, stakeholders clash over solutions while experts warn of potential economic consequences
South Africa's national budget stands at a crucial crossroads between social welfare and economic growth. This analysis explores how strategic fiscal planning could transform the nation's future, balancing social responsibilities with competitive advantage in the global market.
South Africa's national budget requires strategic reform to boost economic growth while maintaining fiscal responsibility. This analysis explores key areas for improvement, from SOE restructuring to infrastructure investment, offering practical solutions for sustainable economic development
Finance Minister Enoch Godongwana faces criticism for suggesting a VAT increase or cuts to Covid-19 Social Relief of Distress grants, with activist Darren Campher calling it a betrayal of the poorest South Africans.
Parliamentary committee chairs have identified potential billions in government savings through property portfolio optimisation and diplomatic corps restructuring, suggesting these alternatives should be explored before implementing the controversial VAT increase to 17%. Key areas of focus include excessive diplomatic salaries, untapped digital economy revenues, and inefficient property leases
Several South African provinces are set to lose nearly R1 billion in development grants due to non-expenditure, with Gauteng and Western Cape facing the largest cuts.
The South African government announces ambitious plans to revolutionise the logistics sector, backed by World Bank support, with key focus on rail infrastructure and private sector participation. Transport Minister Barbara Creecy outlines strategic reforms aimed at moving 250 million tonnes of freight by 2030.
inance ministers from the world's leading economies failed to reach consensus at the G20 meeting in South Africa, highlighting deepening global divisions on climate finance and economic policies. With notable absences from key nations and against a backdrop of foreign aid cuts, the meeting resulted in a chairman's statement rather than a joint communiqué
"Minister Ntshavheni confirms March 12 for the 2025 National Budget presentation, while Cabinet prepares for special meeting to address fiscal matters. Discussions include potential VAT adjustments and US-SA relations amid PEPFAR funding concerns
President Ramaphosa addresses GNU budget challenges and proposed VAT increases as South Africa faces crucial fiscal decisions. Finance Minister's budget presentation delayed amid negotiations over new revenue measures.
Swazi Tshabalala, former AfDB senior vice president, launches her bid for the bank's presidency with South African government backing. With three decades of experience in infrastructure finance, she presents a vision focused on innovative financing solutions and continental development
Political analyst Sandile Swana and Business Leadership South Africa have strongly criticised the Cabinet's Budget Speech postponement, warning it damages investor confidence and reflects poor governance.
In a statement issued on Thursday, the Council said Finance Minister Enoch Godongwana's failure to deliver the Budget Speech in Parliament on Wednesday was a “historic first in our democratic era that jeopardises the very foundations of our state".