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Economic Freedom Fighter MP Sinawo Thambo.
The Economic Freedom Fighters (EFF) has called on Parliament to withdraw the 2025 Fiscal Framework and Revenue Proposals adopted nearly four weeks ago.
The party is also calling for the resignation of Finance Minister Enoch Godongwana.
This follows an announcement by the Finance Ministry that the 0.5 percentage point VAT increase would be rescinded.
The party joined the Democratic Alliance (DA) in a Western Cape High Court application to interdict the VAT increase, arguing that the adoption of the budget was done via deceitful and unprocedural means.
EFF spokesperson and MP Sinawo Thambo explains their position. “We call for the NA and NCOP to convene and adopt resolutions to withdraw the adopted 2025 fiscal framework and revenue proposals on the basis that they were adopted following an unprocedural meeting which approved the reports. We will consider the written-out-of-court settlement proposal by the minister. We maintain that without full withdrawal and reset of the budget process remains illegal and unconstitutional.”
Thambo adds that until the process is reviewed, celebrations about the reversal of the VAT increase may be premature.
“We are concerned about the celebrations about reversal whereas the minister knows very well as should’ve reflected in statement that proposal to introduce an amendment bill doesn’t effectively and unilaterally reverse the VAT hikes….the bill needs to serve before parliament and consistencies within legislation re money bills act, for VAT to be reversed. South Africans need to be cautious regarding the celebrations until these processes have unfolded.”
EFF reacts on decision to withdraw VAT hike: Sinawo Tambo
‘Find alternatives’
Meanwhile, the MK party spokesperson Nhlamulo Ndhlela has welcomed the reversal of the 0.5 percentage point VAT increase, but says there is a failure to find alternatives to the hike because of the country’s leaders.
“We have always said we are led by lazy thinkers in this cabinet because there are many solutions that we have proposed as MK. Firstly, one of the examples is that you double infrastructure investment from 5 percent to 10 percent, which brings about activity in the economy, job creation, and by virtue of that, it creates momentum for small business creation that alone will increase growth in the GDP in this country. We want to nationalise the Reserve Bank so that we can also bring not just their mandate being inflation targeting, but you also need to bring in labour-related policies so that you balance the two. You can easily save R100 billion from the R76 billion that they want. So we are saying it is because of the lazy thinking that we have in this country.”
