Johannesburg, South Africa – President Cyril Ramaphosa has called an emergency Cabinet meeting on Wednesday afternoon amid growing political tensions over a proposed increase in value-added tax (VAT), expected to be announced by Finance Minister Enoch Godongwana.
AfricaHeadline Reports Team
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Ramaphosa’s decision follows a warning from the opposition Democratic Alliance (DA) that it will reject the national budget if the VAT hike goes ahead. The DA argues that raising the tax would directly impact consumers and worsen the economic crisis, while the government insists that additional revenue is necessary to sustain public services and stabilize the country’s finances.
The Cabinet meeting comes at a critical moment for South Africa’s economy, which continues to struggle with sluggish growth, high unemployment, and a widening fiscal deficit. The government is under pressure to find solutions that do not disproportionately affect the most vulnerable segments of society.
The DA, which leads the opposition coalition, has warned that such a measure would face strong resistance in parliament. “We will not support a budget that punishes South Africa’s poorest while the government continues reckless spending,” DA leader John Steenhuisen said.
Ramaphosa is also facing increasing political pressure as the ruling African National Congress (ANC) prepares for the 2024 general elections, with declining approval ratings and internal divisions threatening its governance.
Political analysts suggest Ramaphosa may seek a compromise within his Cabinet to avoid a deeper political crisis. The government has not yet officially commented on alternative proposals, but sources indicate that targeted tax adjustments on specific sectors could be considered as a middle-ground solution.
Uncertainty over the budget and the risk of a parliamentary deadlock add another layer of instability to South Africa’s already turbulent political and economic landscape.
