EFF-ANC talks explode myths of VAT reversal

Malema

Cape Town – The Economic Freedom Fighters (EFF) clarified that its recent meeting with the African National Congress (ANC) should not be seen as an effort to reverse the proposed 0.5% VAT increase, dismissing such expectations as unrealistic and legally impossible.

This comes amid criticism of parties like ActionSA, which claim the VAT hike can be overturned quickly.

Led by Julius Malema, the EFF met with ANC negotiators to engage in ongoing discussions about the budget process, despite not supporting the fiscal framework.

This marks Malema’s first direct involvement in national coalition talks.

“The EFF wants to make it categorically clear that we are under no illusion that there is any legislative possibility of reversing the VAT increases which were supported in the fiscal framework and revenue proposal for various political parties in the standing committee on finance and subsequently, in the National Assembly.

“Our engagement with the ANC must, therefore, not be mistaken as participation in a fruitless exercise to seek alternatives to the VAT increases within 30-days under the false hope that such alternatives will be implemented before the first of May 2025. This is simply not practical, realistic or legislatively permissible,” the EFF said in a statement.

The GNU was formed following the 2024 general elections, which produced no outright winner, resulting in a power-sharing arrangement.

However, internal tensions and conflicting priorities have plagued the unity government, prompting the ANC to explore new alliances and revisit the current framework.

It remains unclear what specific proposals or demands were tabled during the EFF-ANC meeting.

The EFF has previously been critical of the GNU’s composition, particularly the inclusion of the Democratic Alliance (DA), which it sees as ideologically opposed to radical economic transformation.

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