Picture: Instagram
I was one of the people who was shocked by the budget speech being postponed, for as long as I can remember, we have never been in such a position as a country.
The budget speech that was meant to be delivered on the 19 February was postponed to 12 March, as announced by the National Assembly Speaker, Thoko Didiza.
This is because of the disagreement among parties in the executive branch regarding proposals in the budget, particularly a potential 2% increase in Value-Added Tax (VAT).
This delay has come as a shock to South Africans as have sparked concerns about the stability of the government and the potential impact on the economy.
The postponement of the budget speech has also led to a decline in the value of the South African rand and an increase in bond yields. This development highlights the challenges facing the South African government as it tries to balance its finances and address the country’s economic woes.
The Democratic Alliance (DA), the second-largest party in the government, opposed the proposed VAT increase, which was expected to generate an additional R60 billion in revenue. The DA argued that this increase would harm the economy and lead to job losses. When the speech was delayed, they said that it was because of their actions.
Minister Gayton McKenzie dismissed the claims of DA saying that the delay was not because of their actions, saying it was rather a collective stance taken by several Cabinet members.
With the ongoing debate on X (previously Twitter), users shared their views about the increase.
One user spoke about how the hike would hit badly on families that are already struggling.
A 17% VAT hike would hit struggling families the hardest—raising prices on essentials while wages stagnate. Was this about ‘fiscal responsibility’ or making citizens pay for government failures? Postponing the budget doesn’t erase the intent. Thoughts?
— KingKai (@KingKai_1_) February 19, 2025
Another one revealed that they are a foreigner and urged that the VAT is not increased because things are already expensive.
A 17% VAT hike would hit struggling families the hardest—raising prices on essentials while wages stagnate. Was this about ‘fiscal responsibility’ or making citizens pay for government failures? Postponing the budget doesn’t erase the intent. Thoughts?
— KingKai (@KingKai_1_) February 19, 2025
One user said that with the increase of VAT, other things like electricity and fuel will also go up.
17% VAT is dog shit, our government dont know shit about creating opportunities for South Africa to grow and fund itself, citizens have to always cover for these fools incompetency.
Electricity ⬆️, VAT ⬆️ and NHI is coming, just to name a few. We are busy funding their failures
— seezz (@its_seezz) February 19, 2025
Another one said the government is failing people with jobs.
17% they are doing too much now!! Everyone must not declare their VAT in retaliation!! Why are they failing audits and still have jobs! Fok man!! pic.twitter.com/iuhdn7Zh7Z
— A Venda Uppity African 🇿🇦🇿🇦 (@Pretty__Geek) February 19, 2025
Also see: Gayton McKenzie quickly becomes ‘Minister of unhappiness’ after an unexpected meeting with Afriforum
