GNU reach an agreement

THE ANC and the DA, the two leading parties in the Government of National Unity (GNU) are on the verge of coming to an agreement to pass the contentious budget.

- BY KAMOGELO MOICHELA

GNU parties have previously been fighting over Finance Minister Enoch Godongwana’s proposed 0.5 percent increase in Value Added Tax (VAT).

Sources told IOL that the DA and ANC have agreed on a deal that would give the DA more influence over economic policies going forward.

However, the Expropriation Act — a sticking point for the DA — will remain unchanged.

This development follows the DA’s initial rejection of the ANC’s proposal for a 0.5 percent increase in VAT, which sparked controversy among citizens and other GNU partners.