Treasury set to brief media on budget process following VAT reversal

CAPE TOWN - The National Treasury is set to brief the media later on Wednesday to explain the technical process that must be followed on the 2025 budget following the value-added tax (VAT) increase reversal.

The Treasury briefing follows a lot of uncertainty on what must happen now that the adoption of the VAT announcement in March and the fiscal framework have been set aside by the high court, and the withdrawal of money bills like the Appropriation Act.

The briefing will be led by the Minister of Finance Enoch Godongwana, who will be supported by Deputy Ministers David Masondo and Ashor Sarupen.

On Tuesday, Parliament said that although Godongwana publicly announced the withdrawal of the VAT increase for the withdrawal to be legally enforceable, it required a “legal rescission” of the resolution passed on 2 April by both houses.

The national legislature also confirmed that the entire budget process will now start afresh since the Appropriation Bill has also been withdrawn.

Parliament spokesperson, Moloto Mothapo, said a new Appropriation Bill and revised budget instruments will need to be introduced through another budget speech, after which the budget votes will be scheduled afresh.

“Going forward, Parliament is actively engaging the executive to determine an appropriate date for the tabling of the revised national budget. We expect the minister to table the necessary budget instruments in the coming weeks.”

Godongwana is expected to further explain the process that they will now follow when he briefs the media, and also provide some timeframes on when he’s expected to table the new fiscal framework and budget. 

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