The big tax divide

BUDGET: DA, ANC CAN'T AGREE ON 2% VAT INCREASE, SO IT'S POSTPONED

- Ina Opperman

The embarrassment of postponing the budget until 12 March could have been avoided if the ANC communicated with the speaker of parliament in advance when it saw no consensus would be reached on increasing VAT by 2%.

But the postponement also shows how well the government of national unity works, some experts say.

It was unfortunate that the differences between the ANC and DA on the issue of any tax increases had to play itself out so badly and embarrassingly, said Bonke Dumisa, an independent economic analyst.

"The ANC has been in power for a long time and understands how these things work. Upon realising that the issue of a possible 2% increase in VAT was going to be divisive, it would have made sense to postpone."