ANC ministers 'were the first to object to VAT hike': Khumbudzo Ntshavheni

Ministers from the ANC were among the first to object to the National Treasury’s proposed two percentage point hike on VAT during a special meeting of the GNU cabinet.

This was revealed by minister in the Presidency Khumbudzo Ntshavheni at a press conference in parliament on Wednesday, after a day of unprecedented high drama.

The tabling of the R2-trillion 2025/26 budget by finance minister Enoch Godongwana was postponed just minutes before the presentation was due at 2pm on Wednesday. This was the first time since 1994 that the budget speech had been delayed.

The move came after parties in the GNU failed to reach consensus on Godongwana’s plans to raise VAT in the coming financial year after he stunned them with the numbers during the special cabinet meeting on Wednesday.

The DA, through its leader John Steenhuisen who is also the GNU’s agriculture minister, was the first to claim victory after the postponement of the budget speech to March 12, saying it happened at the DA's behest.

Steenhuisen said the proposed VAT hike would “break the back” of the economy.

“We will now fight to introduce a new budget that is anchored in growing the economy, rather than increasing taxes or debt.”

Steenhuisen said his party “could not in good conscience support a two percentage point VAT increase”.

But this explanation was rejected by Ntshavheni, who told the media that several ministers from the ANC were the first to speak out the proposed hike.

The ministers objected after Godongwana presented the numbers to them for the first time on Wednesday, just hours before he was due to be table them before MPs.

The postponement is to allow for further consultation among Godongwana, the cabinet and the rest of the parties in the GNU.

Ntshavheni insisted that the DA was not the only party opposed to the VAT hike, hence the decision to postpone the budget was agreed to by all 10 parties in the GNU.

“If we want to mention names like other people are, we can mention names of who supported who, who did not. And you will be shocked so let’s not go there. Cabinet asked for a postponement of the budget and said they needed more time to engage with the issues about the trade-offs.

“In cabinet we have a sitting order, so the older ministers sit in front. So when (people) are raising hands, it means it will be ANC ministers who will speak first and the focus of the discussion is not about party politics.”

After the cabinet resolution to postponed the budget, Deputy President Paul Mashatile, in his capacity as leader of government business in parliament, was dispatched to negotiate a new budget date with National Assembly speaker Thoko Didiza.

In turn, the speaker called an urgent meeting of the chief whips’ forum to inform them of the developments and secure their consensus on the budget. 

Just after 2pm Didiza told the National Assembly convened at the Nieuwemeester Dome that the budget had been postponed, for the first time since 1994.

This did not sit well among party leaders such as the EFF’s Julius Malema who wanted the tabling to proceed as scheduled.

“You are now subjecting the budget to party politics, when the budget is supposed to be above party politics,” said Malema to Didiza. “Let the budget be presented here and let parliament decide that this is the decision we are taking as parliament, whether to accept or not.

“You can’t come here as speaker and say confidently that the parties in the GNU do not agree, what is that? We don’t have parties in the executive. You are denying the people of South Africa to see what is happening in this government. There’s not government, it has collapsed, it has no capacity to present a budget.”

MK Party chief whip Mzwanele Manyi echoed the sentiment.

“This country has no leadership; this is what we are facing. Let the minister of finance come and say whatever he wanted to say and we deal with it here.”

Leader of Bosa, Mmusi Maimane, warned that the postponement of the budget may end up being the subject of court proceedings.

“Today marks a historic day. What I do believe is that what we do in this house is guided by legislation. And therefore the Money Bills Act does compel to a particular timeline as to when the budget is going to be tabled, what committee is meant to process it and how that goes.

“Any natural delay that emerges a function of today does in fact mean that parliament is placed under pressure in not being in a position to consult with the people. So may I ask that it must not be an arbitrary decision as to when this must be tabled. We must be given a firm date so that we can work the timetable consistent with the law. Otherwise the disagreement that took place today will end up in a court of law and we as parliament will be held accountable for that.”

Moments after this intervention by Maimane, the date of March 12 was announced by the finance minister.

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