Africa-Press – South-Africa. Parliament’s finance committee has called off a meeting that was slated for Wednesday to discuss a new bill that Finance Minister Enoch Godongwana last week to reverse a proposed value-added tax (VAT) increase.
The budget process will have to start from scratch after a legal challenge by the Democratic Alliance (DA) and Economic Freedom Fighters (EFF).
The finance committee’s chairperson, Joe Maswanganyi, says he does not want to begin processing a bill that could be out of kilter with a new budget.
The amendment bill does not only deal with VAT, but other taxes too.
National Treasury has been sent back to the drawing board by the Western Cape High Court after it set aside the fiscal framework – which underpins the budget.
With the national budget process once again in limbo, all eyes are now on Godongwana as he tries for a third time to produce a budget that will enjoy majority support.
While opposition parties call for him to step down, Maswanganyi says he doesn’t expect it will take Godongwana much longer than next week to table a new fiscal framework.
In the meantime, Parliament is holding off on processing a new bill that will return the VAT rate to 15% after the court suspended the 0.5% increase over the weekend – following agreement between the DA, EFF and National Treasury.
“We are engaging with National Treasury so we have an idea as to whether, with the current rates bill and with the budget that they are going to re-table, there will be compatibility.”
The EFF says it will be keeping a close watch on the next round of budgetary processes after it put pressure on the chairperson to call off a first meeting on the bill – until a new fiscal framework is tabled.
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