Steenhuisen confirms disagreements over VAT among reasons for budget speech postponement

JOHANNESBURG – Democratic Alliance (DA) leader John Steenhuisen has confirmed that disagreements over value-added tax (VAT) are among the reasons for the postponement of the budget speech.

Finance Minister Enoch Godongwana was set to deliver the speech at 2 pm on Wednesday afternoon - but internal conflict within the Government of National Unity (GNU) caused a delay.

It's understood Godongwana planned to propose a 2% point increase in VAT, raising it to 17%.

Speaking to reporters outside parliament, Steenhuisen said his party was not prepared to support the VAT hike.

“VAT was of course one of the matters and I think that has been played out in the media over the last few weeks. It was obviously a key point for me if I wear my hat as the leader of my party. We couldn’t in good conscience support a 2% increase given the current economic circumstances in South Africa.”