He emphasised that the authority to approve or withdraw the proposed 0.5% increase in Value Added Tax (VAT) lies solely with Finance Minister Enoch Godongwana.

The proposal has caused friction among members of the GNU, with concerns raised over its potential effect on already strained household finances. While Parliament has a say in the budget process, Maswanganyi stressed that the final call remains with the minister.

“Only the Finance Minister can decide whether to move forward with the VAT adjustment. If he chooses to withdraw it, there’s a legal process that must be followed,” Maswanganyi noted, adding that the next steps remain uncertain until Parliament finalises its recommendations.

He also issued a stark warning regarding the potential fallout if key budget legislation fails to pass in the National Assembly.

“If Parliament does not pass the Appropriation Bill and the Division of Revenue Bill, the country could face a serious crisis. That would mean relying on last year’s budget, and after four months, government departments wouldn’t be able to continue spending,” he cautioned.

Godongwana is expected to weigh Parliament’s input before making a final decision. Until then, uncertainty remains over whether the VAT increase will be implemented, and what that could mean for SA’s fiscal future.

--ChannelAfrica--