South Africa to present new budget after VAT scrapped

South Africa's Finance Minister Enoch Godongwana said on Wednesday that he would present a new budget on May 21.

Godongwana is expected to announce changes to revenue and spending projections after he scrapped a fiercely-opposed increase in value-added tax.

The minister told a briefing that there would be thorough consultations with all political parties in the coalition government as well as approval by the country's cabinet before the revised budget is presented in parliament next month.

The last time VAT was raised was in 2018. A broad swathe of political parties and labour unions had voiced strong opposition to any further increase, saying it would hit the poor disproportionately hard despite efforts to shield them through a list of "zero-rated" items.