ANC may turn to EFF for budget support amid VAT hike dispute – report

The DA claims credit for blocking a proposed 2% VAT hike, while Treasury has suggested a 0.75% compromise, The Citizen said on Sunday, citing Sunday Times.

The ANC is reportedly frustrated with the DA’s opposition, accusing them of politicising the issue.

“If the EFF want to support a VAT increase that will hurt the poor, then they must explain that to their electorate,” the report quoted DA leader John Steenhuisen as saying.

Meanwhile, the Parliamentary Budget Office has urged the government to disclose alternative revenue sources if the proposed two-percentage-point VAT increase is rejected.

According to SABC News, Executive Director Dumisani Djantjies suggested that Parliament should compel the government to reveal other revenue options.

“What is important in our view and analysis is to say maybe then parliament should coerce government to provide those options that were looked into, and in that way, they will be able to see what has been considered in our view and analysis that we are currently busy with, which I am not going to share a lot of until we publish next week.

“We do feel there is a lot of evidence of sources of revenue that we can still tap, and also breaking down to immediate need and medium- to long-term sources of revenue could be considered in that regard,” Djantjies said as per the report.

Alternative revenue options include higher taxes on the wealthy, improving SARS efficiency, reducing spending, and tightening illicit trade controls.

Cabinet and Treasury is set to hold a special meeting on Monday to finalise the budget, with Minister in the Presidency Khumbudzo Ntshavheni emphasising a collective, non-partisan approach to decision-making, according to IOL.