VAT increase likely as Godongwana set to deliver budget, EFF pushes back

EFF

Cape Town – The Economic Freedom Fighters (EFF) has urged Members of Parliament (MPs) to reject and seek amendments to any proposed tax increases in the upcoming 2025/2026 budget speech, which will be presented by Finance Minister Enoch Godongwana on Thursday. 

EFF spokesperson Sinawo Tambo said he anticipates a possible VAT increase and stresses that MPs should actively engage with Treasury to ensure a growth-focused budget.

“I think it’s inevitable that there’s going to be a percentage point increase in VAT, it’s just about the quantity of it now. And we must be prepared as responsible parliamentarians – not only to reject that but to amend it because there’s actually legislation that allows members of parliament to reject a proposed fiscal framework and revenue proposal and that is exactly what the finance minister is going to present,” he said during an interview with SABC News.

“What Treasury presents through the Minister of Finance – that’s something that can only be accepted or rejected. There must be a constant back-and-forth engagement with Treasury. And therefore it’s up to parliamentarians to now participate in active bipartisanship and ensure that we create a growth ensured budget.”

Meanwhile, according to IOL, President Cyril Ramaphosa has called a cabinet meeting to resolve disagreements over the budget, as discussions remain stalled.

Reports indicate that a 0.5% increase in VAT has been proposed, with the ANC pushing to move forward with the hike.

However, the DA has said that it will oppose the budget if the VAT increase is included.

“We will not vote the budget in. We can’t support a budget that taxes South Africans heavier than they are.

“It would have been easier if they had committed to economic reform that we can easily direct to say out of this budget, we will see growth. But we don’t have that now, so it won’t work,” the DA said, according to the report.

Article written by