Following the Western Cape High Court’s ruling that halted the 0.5% value-added tax (VAT) increase, the EFF has reaffirmed its demand that Enoch Godongwana step down as finance minister.
In response to the Western Cape High Court’s ruling, the EFF also demanded that Duncan Pieterse, the director-general of the National Treasury, step down.
According to EFF leader Julius Malema, Godongwana and Pieterse have shown that they are unable to create a budget that is credible.
VAT remains at 15%
Malema was addressing the media at the EFF’s headquarters, Winnie Madikizela-Mandela House, in Marshalltown, Johannesburg, on Monday.
The Western Cape High Court ruled on Sunday to halt Godongwana’s plan to raise VAT from 15% to 15.5% starting on May 1, 2025.
This court order means that the VAT remains at 15%.
The court judgment states that “the minister of finance’s announcement on March 12, made under section 7[4] of the Value-Added Tax Act 89 of 1991, adjusting the VAT rate to take effect in two phases [0.5 percentage points from 1 May 2025 and a further 0.5 percentage points from 1 April 2026], is suspended pending the passing of legislation regulating the VAT rate or the final determination of the court proceedings.
“In addition, the resolutions of the National Assembly and the National Council of Provinces adopted on April 2 to approve the 2025 fiscal framework are set aside. This outcome enables the minister of finance to table revised budget instruments afresh.”
Godongwana is detached from economic realities
Malema said Godongwana and Pieterse have lost the trust of ordinary South Africans and the business community as a result of their “incapability” to formulate a budget.
“The EFF has long warned that the current minister of finance and the leadership of the National Treasury are incompetent, untrustworthy, and incapable of tabling a credible, believable, and lawful budget.
“From the onset, it was clear that they were detached from the economic realities faced by ordinary South Africans.
“In light of this decisive judgment, the EFF calls for the immediate resignation of Finance Minister Enoch Godongwana and National Treasury director-general Duncan Pieterse.”
He continued: “These individuals have proven themselves incapable of formulating a lawful, credible, and developmental budget.
“They have lost the confidence of the people of South Africa, and the business community should not trust them.
“It is the business community that has spent billions on changing their VAT systems for nothing and should pursue any means necessary to hold the government accountable.”
EFF and DA took Godongwana to court
The Western Cape High Court judgment came after the DA and EFF took the finance minister, commissioner of the SA Revenue Service, speaker of the National Assembly, and chairperson of the National Council of Provinces to court seeking an order to set aside the adopted 2025 fiscal framework and 0.5% VAT increase.
A strong backlash forced Godongwana to change his initial proposal to raise the VAT, which is currently at 15%, by two percentage points.
Instead, he proposed a 1% increase with a 0.5% split increase in two fiscal years, 2025–2026 and 2026–2027.
Last week, Godongwana instructed the Treasury not to increase the VAT from the beginning of May.
On Sunday, he agreed to a court order suspending his decision of March 12 to increase the VAT rate by 0.5 percentage points.
