Chairperson of Parliament’s Standing Committee on Finance, Joe Maswanganyi, has clarified that the decision to implement the proposed 0.5% Value Added Tax (VAT) increase ultimately lies with Finance Minister Enoch Godongwana.
The proposed VAT adjustment, set to potentially take effect on 1 May, has sparked disagreement among members of the Government of National Unity (GNU). Maswanganyi noted that any change to the plan would require the minister to follow proper legal procedures.
“If the Minister chooses to reverse the decision, he must follow the appropriate legislative channels,” Maswanganyi told media, adding that he remains uncertain about what action the Minister might take following Parliament’s recommendations.
Maswanganyi also issued a warning about the broader financial implications of delayed legislation. He cautioned that failure to pass critical fiscal instruments such as the Appropriation Bill and the Division of Revenue Bill could trigger a national funding crisis.
“If Parliament does not pass these key Bills, it means government spending will be limited to the previous financial year’s budget. After four months, the current budget would effectively stall,” he explained.
The debate around the VAT increase continues as economic pressures mount and stakeholders weigh the impact on consumers and the broader economy.