Finance Minister Enoch Godongwana postponed the scheduled Budget Speech after parties in the Government of National Unity disagreed over a proposed value-added tax increase. This was an early public test of the coalition formed after the ANC lost its parliamentary majority. Disputes over VAT also raised a distributional question: consumption taxes affect households across income groups, while poorer households spend a larger share of income on basic goods. The ANC remained the largest party in the coalition, but could not govern the budget process alone.
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