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Tax-related material on a desk.
ActionSA has accused the Democratic Alliance (DA) of complicity in the initial proposed controversial two percentage point VAT increase, despite the party’s public denials.
A Parliamentary reply that ActionSA has obtained reveals that DA MP and Finance Deputy Minister Ashor Sarupen allegedly played a significant role in drafting the original budget speech proposing the hike.
ActionSA MP Alan Beesley has criticised the Government of National Unity (GNU) partner of political opportunism and hypocrisy.
“As Action SA, we were deeply concerned that the Democratic Alliance essentially threw the finance minister under the bus, saying that he had gone rogue that there were no consultations on the two percent. So, having listened to that, I was concerned, so we asked a question to the Finance Minister on what was the role of the two deputy finance ministers in this process. Because we’ve got two Deputy Finance Ministers, one from the ANC, one from the DA and in his written response, he states that the two deputy ministers were intimately involved in the whole budget process, including writing the budget speech that contained the two percent VAT increase. So, for the DA to claim that they had no knowledge of the VAT increase is totally wrong, it’s hypocritical.”
PODCAST | ActionSA accuses DA of complicity in controversial 2% VAT increase:
DA denies allegations
The DA has meanwhile denied all allegations levelled against it by ActionSA.
This comes as the DA challenges the impending May VAT increase in the Western Cape High Court today.
The party argues that the tax hike would intensify South Africa’s cost of living crisis.
DA Federal Chairperson, Dr Ivan Meyer, says his party has been opposed to the VAT increase from the onset.
“The Deputy Minister Ashor Sarupen is a trustworthy person, a reliable person, an honest person, an ethical person. There were a number of meetings where he was present, together with the national minister. We have flatly, from the beginning, opposed the VAT increase, and he said so in those meetings. He’s on record that he is opposed it, so there’s no way that Action SA can claim that the Deputy Minister of Finance knew, or supported that increase, it’s absolutely not true. We are in the GNU for two reasons – to grow the economy and to create more jobs; and VAT is a regressive tax.”
PODCAST | DA to challenge impending VAT increase in court:
VIDEO | DA takes VAT fight to court:
