The Economic Freedom Fighters have outright rejected the anticipated VAT increase ahead of the Budget Speech 2025, warning that it may reject the proposed budget altogether.
Finance Minister Enoch Godongwana will deliver the Budget Speech 2025 on Wednesday after it was initially postponed. However, it seems that there is still fierce opposition to the proposed budget.
EFF firmly rejects VAT hike
The EFF has taken to social media ahead of the Budget Speech to highlight its opposition against the expected 2% increase in Value Added Tax.
In line with this, the political party has offered an alternative solution to financing the proposed budget:
“SARS Commissioner has advised that R800 billion can be recovered if treasury invests in improving SARS collection capacity. This is more than the R58 billion that would come from a VAT hike.” EFF statement
Budget Speech 2025 may be rejected entirely
Furthermore, the EFF has voiced the call for opposition parties to unite under the banner of rejecting the budget.
“Members of Parliament have the power to not only reject the budget, but to amend it. It is time for opposition parties to unite and amend the proposed budget for the first time in our democracy. Parliamentarians Have The Power To Reject A VAT Increase And Develop A Jobs And Growth Budget!” The EFF continued.
Additionally, the EFF has called for a reduction in Cabinet in another attempt to avoid the VAT increase:
“Cut the size of cabinet! Less Deputy Ministers, not more tax is the solution.” EFF commented.
Protests ahead of Budget Speech 2025
Ahead of the address, trade union federations and several civil society movements gathered outside of the National Assembly to protest against the controversial increase in VAT.
Congress of South African Trade Unions (COSATU) general secretary Solly Phetoe joined the protest and commented that the union expects a budget that supports poor South Africans.
“If government wants to increase taxes, it must tax the rich. It must increase corporate tax to those with businesses in South Africa to create an increase in the economy of South Africa.” Phetoe said.
Do you expect VAT to be increased during the Budget Speech 2025?
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