* The tax on goods and services which affects ordinary people at the shops
* This year the ANC needs the support of other parties to pass the budget, as it lost its parliamentary majority
Maravi Express
A budget sitting of South Africa’s Parliament, scheduled for today, February 19, has been adjourned to March because of lack of agreement over the proposal by the ruling African National Congress (ANC) to increase value-added tax (VAT) by 2 percentage points.
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A report by CNBC Africa says this year the ANC needs the support of other parties to pass the budget, as it lost its parliamentary majority in the country’s election last year.
Its main partner in the government of national unity (GNU) that emerged last year, the Democratic Alliance, is quoted as saying the budget had been postponed because of its opposition to the VAT increase — the tax on goods and services which affects ordinary people at the shops.
Speaker of the National Assembly, Thoko Didiza is quoted as telling the lawmakers that budget proceedings had never been postponed like this in the three decades since the end of apartheid.
The report says the South African Rand extended losses after the budget was delayed, at one point trading down 1% against the US$ on the day.
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