South Africa’s Finance Minister Enoch Godongwana has indicated that the country’s budget may undergo additional changes as negotiations between political parties continue to address disagreements over a proposed value-added tax (VAT) increase.
The revised budget, presented on Wednesday, scaled back the VAT hike from 2 percentage points to 1 point, spread over two years.
However, most major parliamentary parties rejected the budget, with the Democratic Alliance and other parties opposing any tax increases.
Godongwana’s African National Congress (ANC) requires the support of at least one other major party for the budget to pass.
The finance minister expressed openness to hearing proposals from lawmakers on how to modify the budget, emphasizing the need for difficult trade-offs.
The budget has become a significant test for the fractious coalition formed last year when the ANC lost its parliamentary majority for the first time since the end of apartheid.
Godongwana noted that the budget could be the most contentious in years, with the government unlikely to propose further tax increases soon.
