South African Treasury Revamps Tax Makeup in New Budget Proposal

South Africa’s National Treasury will present a revised budget to the cabinet on Monday that proposes adjusting the revenue mix, after members of the coalition government rejected its plans to raise an additional 191 billion rand ($10.2 billion) over the next three years by sharply increasing value-added tax.

Enoch Godongwana.

Photographer: Dwayne Senior/Bloomberg

Finance Minister Enoch Godongwana was due have tabled the budget in parliament on Feb. 19, but his speech was delayed amid opposition to a two-percentage-point increase in the VAT rate.

The reworked plan incorporates a smaller VAT adjustment and a possible fuel levy increase to make up the revenue shortfall, according ...