Nontando Nolutshungu, the chief whip for the EFF in parliament, has expressed concern about Finance Minister Enoch Godongwana‘s decision to reverse the value-added tax (VAT) increase and withdraw the Appropriation and Division of Revenue Bills.
It is “constitutionally shaky” to proceed with the Rates and Monetary Amounts and Amendment of Revenue Laws Bill, according to Nolutshungu’s letter to Thoko Didiza, the Speaker of the National Assembly.
She contended that the withdrawals would further jeopardise the legitimacy and integrity of the legislative process, particularly in view of the legal challenge put forth by the DA and EFF.
“This development has occurred despite the fact that the very fiscal framework underpinning this revenue proposal remains contested and is the subject of a court process, with judgment expected on April 29,” she said.
Fiscal framework no longer legally viable
Despite this, she said, the Rates Bill has already been sent to the standing committee on finance.
“It is the EFF’s considered view that parliament should not process a bill so central to the 2025 budget while the legality of the fiscal framework remains under judicial scrutiny. To do so would further risk undermining the credibility and integrity of the legislative process.
“A brief pause to await the court ruling scheduled for the 29th of April 2025 would not delay parliament unreasonably but rather demonstrate institutional respect for legal processes and enhance constitutional governance,” reads the letter.
Using Godongwana’s confirmation of a R75 billion revenue shortfall resulting from the removal of the 0.5% VAT increase, she asserted that the fiscal framework is no longer legally viable.
Right to legal recourse
According to her, it is a clear violation of the Money Bills Amendment Procedure and Related Matters Act Section 11(3)(a).
She demanded an urgent halt to the 2025 budget process and a gathering of all political leaders to discuss a course of action.
She said in the letter that the red berets also want the standing and select committees on finance and appropriations to hold a workshop on legal and financial conduct in order to make clear the regulations governing the national budget process.
“We therefore call on you, honourable speaker, to exercise your constitutional responsibility and convene the necessary political and committee forums to halt this crisis before it further delegitimises parliament.
“We reaffirm our right to legal recourse, but our immediate priority is to ensure parliament acts lawfully and in the national interest and to protect all South Africans from the ill-conceived VAT increase.”
