Finance Minister Enoch Godongwana has expressed relief that the process of adopting the 2025 Fiscal Framework is now out of his hands. This is after the National Assembly adopted the framework on Wednesday.
Godongwana only succeeded in tabling a budget on a third attempt, after discontent over his proposed VAT increase in the previous two budget proposals.
He spoke to the media in Cape Town after the National Assembly’s sitting.
“Of course, I am happy. Other pieces that must be adopted. But the strength of the fiscal framework is that the fiscal envelope is adopted; everything must develop in that envelope.”
The official opposition in the House, the uMkhonto weSizwe (MK) party, says it can’t support a budget that will leave the poor in an even more vulnerable position.
Its parliamentary leader Dr John Hlophe explains their position.
“The ANC wanted to initially raise VAT, having failed to do that, it wants to achieve now what it couldn’t achieve through the backdoor into which VAT was abandoned. But wants to achieve the same through a fuel levy. So we are opposed to it, it will make poor communities poorer, not pro-poor. We are opposing that.”
The Economic Freedom Fighters (EFF) says it will challenge the fuel levy increase of 16 cents a litre more for petrol and 15 cents per litre for diesel in court.
Party leader Julius Malema echoed the sentiments of Hlophe that the impact on the poor will be the worst.
“We can’t reject VAT and come through the backdoor to increase the levy. The price of bread will go up, and transport, taxis will increase. It is the poor who are going to be affected by the budget. This is our main issue with the Minister and budget in relation to this framework.”
Some of the parties in the GNU, like the DA and IFP, supported the framework, but say the fuel levy is regrettable.
