Skip to content
Search

Latest Stories

Global Stage AI for Good Summit WATCH RECORDING
What We're Watching

Coalition bust-up over VAT in South Africa?

​South African president Cyril Ramaphosa takes the national salute below a statue of former president Nelson Mandela at the Cape Town City Hall, ahead of his State Of The Nation (SONA) address in Cape Town, South Africa February 6, 2025.

South African president Cyril Ramaphosa takes the national salute below a statue of former president Nelson Mandela at the Cape Town City Hall, ahead of his State Of The Nation (SONA) address in Cape Town, South Africa February 6, 2025.

REUTERS/Nic Bothma
Make us preferred on Google

South Africa’s ruling coalition, made up primarily of the African National Congress and the Democratic Alliance, is showing signs of a possible crack in its government of national unity.

The two parties have been rivals in the past but agreed to work together following elections last May. They have exceeded expectations for how long the coalition could last, but challenges remain, and the DA has proven the weaker partner, with its policy proposals often ignored.


A fight flared between the parties on Wednesday over the ANC’s budgetary proposal to boost the value-added tax, or VAT, by 2%. If it passed, it would take VAT up to 17% on a broad variety of goods, services, and transactions, with exceptions for necessities like basic foodstuffs. The VAT increase was supposed to help fund improvements in security services, infrastructure, health care, and education programs.

But Finance Minister Enoch Godongwana delayed the budget presentation on Wednesday as a result of the squabble, making this year the first time the government won’t present its budget to parliament in February. Coalition leaders must now discuss adjustments before the rescheduled presentation on March 12 — and before the country’s fiscal year starts on April 1. But the delay does mark a win for the DA, showing it can hold its own against the more dominant ANC, even if it doesn’t yet have a viable alternative budget proposal.

While this may be a strong showing for the DA, Eurasia Group’s Amaka Anku says that none of the parties actually want the VAT.

“The ANC is really committed to projecting a sense of unity in the coalition and national government, of national unity, and not making this about ANC and the DA,” she says. Still, a tax increase in some form is likely to come since there’s no clear alternative for raising revenue.

More For You

​People watch as a Long March 10B carrier rocket takes off from Wenchang Spacecraft Launch Site, in Hainan province, China, on July 10, 2026.

People watch as a Long March 10B carrier rocket takes off from Wenchang Spacecraft Launch Site, before returning vertically to an offshore platform for a controlled recovery, in Hainan province, China, on July 10, 2026.

China Daily via REUTERS
China nets a big win in the space raceIn a scene straight out of Looney Tunes, China on Friday maneuvered a gigantic floating net out into the Pacific Ocean, and used it to catch a rocket booster as it gently descended from the sky after launching a satellite into space. The achievement is no cartoon: figuring out how to reuse massively expensive [...]
US President Donald Trump and Ukrainian President Volodymyr Zelensky at the NATO leaders summit in Ankara, Turkey, on July 8, 2026.​

US President Donald Trump holds a bilateral meeting with Ukrainian President Volodymyr Zelensky alongside the NATO leaders summit at the Bestepe Presidential Compound in Ankara, Turkey, on July 8, 2026.

REUTERS/Jonathan Ernst
Trump gives Ukraine another boostUS President Donald Trump said he would grant Ukraine a license to manufacture Patriot air-defense missiles during the NATO meeting in Turkey on Wednesday, fulfilling a longstanding request from Kyiv. These interceptors can protect Ukraine from Russia’s ballistic missiles – Kyiv is struggling to block such attacks. [...]
Flagbearer Sergey Tetyukhin of Russia at the Maracana stadium in Rio de Janeiro, Brazil, on August 8, 2016.

Flagbearer Sergey Tetyukhin of Russia arrives for the opening ceremony of the 2016 Olympic Games at the Maracana stadium in Rio de Janeiro, Brazil, on August 8, 2016.

REUTERS/Kai Pfaffenbach
Could Russia make an Olympic comeback?The International Olympic Committee (IOC) provisionally lifted its ban on Russia participating in the Olympic Games on Tuesday, one that it had imposed following the country’s full-scale invasion of Ukraine in 2022. The IOC said it didn’t want to hold Russian athletes “responsible for their government’s [...]
​US President Donald Trump and Turkish President Tayyip Erdogan at the Bestepe Presidential Compound in Ankara, Turkey, on July 7, 2026.

US President Donald Trump and Turkish President Tayyip Erdogan participate in a state arrival ceremony and honor guard review, before attending a NATO leaders summit, at the Bestepe Presidential Compound in Ankara, Turkey, on July 7, 2026.

REUTERS/Jonathan Ernst
NATO summit opens with Trump at center stageWorld leaders arrived in Ankara, Turkey, for this week’s NATO summit, where a light official agenda is being overshadowed by side deals that could hand US President Donald Trump some early wins. During his meeting with Turkish President Recep Tayyip Erdoğan, Trump announced plans to lift sanctions [...]