South Africa's Budget Speech Postponed Over VAT Dispute

For the first time in 30 years, South Africa's budget speech was unexpectedly postponed due to internal disagreements within the Government of National Unity (GNU), particularly over a proposed 2% increase in Value-Added Tax (VAT). National Assembly Speaker Thoko Didiza announced that the budget will now be presented on March 12, 2025, citing the inability of coalition partners to reach a consensus. The Democratic Alliance (DA) has claimed victory in halting the budget, emphasizing their opposition to the VAT hike, which they argue would further burden struggling citizens. EFF leader Julius Malema criticized the government's failure to manage the situation, declaring that it highlighted the collapse of the current administration. The postponement has raised concerns about the economic implications, as the rand fell against the dollar immediately following the announcement. Calls for a firm rescheduling date have been made to mitigate uncertainty regarding the country's finances.