South African Parliamentary Committee Proposes Budget Amendments

A South African parliamentary committee recommends changes to the deadlocked budget, scrapping a VAT increase. Supported by the African National Congress and ActionSA, the proposal suggests adjusting tax brackets and requires the National Treasury to find alternative revenue and savings measures.

A significant development unfolded in South Africa on Tuesday as a key parliamentary committee endorsed a set of amendments to the nation's gridlocked budget. The proposed changes include a decisive move to eliminate the contentious increase in value-added tax (VAT).

The proposal, led by the relatively small party ActionSA and backed by the dominant African National Congress, calls for adjusting personal income tax brackets in line with inflation. It also mandates the National Treasury to devise alternative revenue measures and expenditure cuts within 30 days.

However, the suggested amendments faced opposition from some lawmakers. Members of the Democratic Alliance, uMkhonto we Sizwe, and Economic Freedom Fighters raised their own proposals, but insufficient support left them unadopted.

(With inputs from agencies.)