The Economic Freedom Fighters (EFF) leader, Julius Malema says Finance Minister, Enoch Godongwana has reneged on extending the zero-VAT rated list.
Godongwana delivered the third instalment of this year’s Budget to parliament in Cape Town.
The Budget was delayed as the ANC and GNU partner, the DA, were at loggerheads over the proposed VAT hike.
The EFF also opposed the hike.
Malema says Godongwana delivered an austerity Budget.
“The ANC is stuck. There is no believable programme to grow the economy and to create jobs. And that is why they wanted to go for a shortcut, which to them was automatically VAT. This is an austerity Budget because even when they said we are going to put so much, but we are no longer putting so much. If you check in the main, it’s education, it’s health, it’s police. It’s services that are directed to our people. They said that they were going to increase the list of the zero-rated. Now, they came back and said they are no longer increasing the list of the zero-rated,” says Malema.
DA MP, Mark Burke and a member of the MK party, Nhlamulo Ndhlela, had different views on the Budget.
“The DA should be in position to support this Budget. Excited infrastructure investment, not funded through tax, while focusing on infra must also see comprehensive spending review. This fuel levy is another VAT increase, expect cost of living to increase with the fuel levy…it is a cost factor for cost of food and transportation, people already burdened with poverty and joblessness,” says Burke.
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