Godongwana Won't Quit After Vat Backtrack

Finance Minister Enoch Godongwana has shrugged off mounting calls for his resignation following a dramatic backtrack on a proposed VAT hike that sent shockwaves through South Africas fragile coalition government.

The controversial plan, which would have raised VAT from 15 to 15.5 starting 1 May, was shelved just days after Godongwana publicly defended the increase as necessary to plug a gaping hole in the budget. Now, he's facing accusations of political flip-flopping and igniting unnecessary instability, as reported by the Daily Investor .

Despite the backlash, the finance boss insists he's done nothing wrong.

'I'm not going anywhere,' Godongwana told Bloomberg in Washington, where he was attending the Spring Meetings of the International Monetary Fund and World Bank. 'My role is to propose revenue legislation in line with the Constitution. I've done exactly that.'

But critics aren't buying it. Opposition MPs and some within the coalition say the abrupt reversal has exposed cracks in the newly formed Government of National Unity GNU - stitched together after the ANC lost its majority in the 2024 elections.