Political Tensions Escalate as Budget with VAT Hike Faces Court Challenge Amidst Uncertainty

• The Government of National Unity’s fragility was exposed as the National Budget narrowly passed with a 0.5% VAT increase.
• 194 MPs supported the budget, while 182 opposed it.
• MPs have a 30-day period to debate the VAT increase, with efforts to scrap it entirely.
• The Democratic Alliance plans to challenge the budget’s approval in court, claiming it was unlawful and unconstitutional.
• The DA opposed the budget, advocating for amendments to promote economic growth and job creation.
• The rand depreciated by over 1.6% following the budget proceedings, reflecting investor concerns.
• Political disagreements have contributed to the rand’s weakening and uncertainty about the government’s stability.
• The budget’s passage without pro-growth amendments sent a negative market signal.

Source: capetimes.co.za

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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