Enoch Godongwana ultimately managed to deliver the budget speech of which the elephant in the room was VAT hike which will increase by 0.5% this year and 0.5 next year that will make it 16% by next year. Godongwana further addressed the reason why they opted for the VAT rather than wealth and corporate tax which other polotical parties suggested.
He said it wouldn't be fair to raise corporate tax while the country is still encounter challenges such as loadshedding and high unemployment rate. He say if they were to raise corporate tax lot of people will be retrenched and it wouldn't be sufficient.
Polotical parties reactions had more party leaders saying they reject the speech. MKP leader Dr John Hlophe said the poor of the poorest are going to be the ones affected most by the adjustment yet minister had other options like the increase on the corporate and wealth tax with which Julius Malema of EFF rephrased the same sentiments. DA leader John Steenhuisen says they are not supporting the adjustment on Tax he further said they're in GNU because they want growth and job creation and the speech doesn't address those issues. Gwede Mantashe criticized DA saying counterpose everything NHI, Bela bill and expropriation of land without compansation.
IFP leader Velenkosi Hlabisa says they are supporting the budget because it is better to increase tax as supposed to go and borrow money. He further said he is happy that SARS is going to be given R2million that they will use for resources that will enable them to recover 800billion that is outstanding. UDM chip whip Kwankwa says they support the budget because they want to push SA forward yet he still believes that minister doesn't have confidence on the growth of SA because he anticipated next year adjustments.