DA leader, John Steenhuisen.
The Democratic Alliance has expressed its disgust that the African National Congress (ANC) is lobbying the Economic Freedom Fighters (EFF) to risk the country’s unstable economy to force 0.75% VAT increase to pass the much anticipated 2025-2026 budget speech which was postponed to March 12, this year.
The DA has labelled the ANC political chess move a “shame” after Finance Minister Enoch Godongwana failed to table South African budget speech in Cape Town on Wednesday, 19 February, which would have been the first under the Government of National Unity (GNU). It was however postponed on the 11th hour after the DA and other opposition parties expressed their discontentment after the VAT, currently 15%, was set to increase by two percentage points to 17%.
DA spokesperson on Finance Mark Burke said the DA rejects such VAT increment because the costs of living which is affecting the majority of people country wide is high already therefore it will be disingenuous for the ANC to subject the country to such hikes. Burk said the DA will not be held hostage by the ANC which has attempted to bring the EFF on its side in relation to the VAT increment stressing that his party won’t be intimidated.
“This is not responsible or collaborative governance—it is reckless and places further strain on the economy. In contrast to the ANC, the DA continues to advocate for credible pro-growth, pro-jobs and actual alternatives that focus on efficiency. We can do this by spending smarter and capacitating SARS, rather than raising taxes on a struggling economy,” Burke said.
DA leader, John Steenhuisen said no agreements had been reached yet on his X social media page stating that said negotiations are still ongoing and he is hopeful a resolution will be found before 12 March.
These developments were formed by differences between the various parties of the GNU that couldn't give birth to soundness over pressing issues in the speech that affects the citizens of this country. The Budget Speech was expected to take place at 2pm on Wednesday.
Godongwana's Budget Speech leaked copies show that the Treasury had moved to propose a 2% increase on the VAT, which would have raised it to 17%.
The Budget Speech read: "After careful analysis of the trade-offs, we have chosen the most responsible path forward. We propose to raise the VAT rate by 2 percentage points to 17 per cent – a necessary step that will enable us to, fund public sector wage increases for our civil servants, expand early childhood development opportunities for our children, retain the teachers, doctors, and essential frontline workers that serve our communities, revitalise our commuter rail system to better serve working-class families and provide above-inflation increases to social grants for our most vulnerable.”
When addressing the media after the failed budget speech, Godongwana said Ramaphosa’s administration must ensure that the country needs to find methods to find its priorities. He brushed off pressing suggestions that the budget speech was postponed mainly because of the 2% VAT proposal which was also denied by opposition parties which weren’t part of the GNU.
"What we are grappling with is not necessarily the matter of 2%, given the challenges we face as a country, how do we fund them, do we continue cutting expenditure, we need to find ways of funding our priorities," said Godongwana.
Presidency Minister Khumbudzo Ntshaveni also attempted to summersault the ANC 2% VAT proposal throwing a curveball to the Treasury stressing that they had a responsibility to ensure that books are balanced.
Finance Minister Enoch Godongwana.
Comentários