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New budget battle looms in South Africa as parties reject VAT increase

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Weeks after the budget was first due to be delivered, South Africa’s finance minister Enoch Godongwana finally made the announcement on Wednesday.

But one of the main sticking points remains. An increase in value-added tax (VAT), which several political parties in the coalition government believe will hurt the poor.

“To raise the revenue needed, the government proposes to increase the VAT rate by half a percentage point in 2025/26, and by another half a percentage point in the following year. This will bring the VAT rate to 16 per cent in 2026/27,” said Godongwana.

That was half the increase it suggested three weeks ago, but was still shot down by several parties.

A marginally improved growth forecast, a narrowing fiscal deficit, and greater infrastructure spending were among the major highlights of the budget.

“As much as the debate has been dominated by the proposed increase to value-added tax, the bigger debate must be about how we grow the economy for the benefit of all South Africans,” said Godongwana.

“A bigger, faster growing economy and the larger fiscal resources that comes with it would give us more fiscal room to meet more of our developmental goals. But the truth is that our economy has stagnated for over a decade.”

Divisions over elements of the budget means Godongwana will need support from a range of political parties to get the revamped version approved.

The second biggest party in the coalition, the Democratic Alliance, which opposes tax hikes, is calling for a complete revision of government spending.

The budget is the biggest test of the fractious coalition government, formed after the ANC lost its parliamentary majority for the first time since the end of apartheid in 1994.

The final budget will be voted on towards the end of May.



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Unprecedented trial for apartheid atrocities opens in South Africa

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A significant step by South Africa’s legal system in confronting the atrocities of the country’s dark political past. 

A judge this week approved the trial of two apartheid-era police officers for their involvement in the 1982 assassination of three student activists.

The prosecution is unprecedented. Until now, no individual had been held accountable for the crime of apartheid.

The case centers around three young freedome fighters killed in an explosion in 1982. The victims were part of a resistance movement opposed to the apartheid regime which enforced White-only rule and domination over the Black majority.

Experts say the trial could open the door for others.

Also this week, South Africa reopened an investigation into the death Albert Luthuli, a former president of the African National Congress (ANC) and Nobel Peace Prize laureate, who was killed in 1967.

The prosecuting authority seeks to have the findings of previous inquests into Luthuli overturned.

The authorities at the time had concluded that Luthuli’s death the result of an accident.

The development comes more than 30 years since South Africa became a democracy and after a Truth commission unearted numerous atrocities.



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Tunisia jails opponents, critics of President Saied

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Tunisia on Friday handed opponents of President Kais Saied lengthy jail terms after convicting them of plotting against state security.

Issam Chebbi and Jawhar Ben Mbarek of the opposition National Salvation Front coalition, as well as lawyer Ridha Belhaj and activist Chaima Issa, were sentenced to 18 years behind bars, their lawyer said.

Businessman Kamel Eltaief received the harshest penalty of 66 years in prison.

They are among forty people, including high-profile politicians, businessmen and journalists, who who were being prosecuted on security and terrorism charges.

Critics say the charges lacked merit, and only served to consolidate Saied’s power grab.

The president won re-election virtually unchallenged last year after the jailing or disqualification on flimsy grounds of his opponents.

Saied has ruled mostly by decree since dismissing parliament in 2022 and promulgating a revised constitution giving himself wideranging powers in 2023.



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Tanzania opposition says jailed leader not seen by family, lawyers

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Tanzania’s main opposition party said it had failed to get access to its leader who is in detention on treason charges.

CHADEMA said Friday that the family and lawyers of Tundu Lissu had failed to see him at a Dar es salaam jail where he had been kept since his arrest on April 9.

In a statement, the party said it held the Tanzanian government and Prisons Service responsible ble for Lissu’s safety.

The Prisons Service quickly denied that Lissu had been moved from jail.

In a statement, the agency dismissed CHADEMA’s concerns as misinformation.

“We would like to inform the public that Tundu Lissu is safe and he is still detained at Keko Prison in Dar es Salaam according to the country’s laws and procedures,” the Service said in a statement.

Lissu came second in Tanzania’s 2020 presidential election. Last week, he was arrested and later charged with treason after a speech demanding election reforms.

Prosecutors said the speech called for an uprising.

With another presidential vote on the horizon, critics say President Samia Suluhu Hassan’s government has ramped repression against the opposition.

This week, the election commission banned CHADEMA from taking part in elections after the party refused to sign a document pledging to obey the commission’s orders.



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