In celebration of the planned value-added tax (VAT) increase being withdrawn, the DA, EFF, and Build One South Africa (Bosa) declared Thursday a victory.
However, the red berets are demanding that Duncan Pieterse, the director-general of the National Treasury, and Finance Minister Enoch Godongwana, resign immediately.
The removal of the proposed VAT increase, according to EFF spokesperson Sinawo Thambo, demonstrated the incompetence of Godongwana and the Treasury.
Thambo stated that the withdrawal of the Appropriations Bill and Division of Revenue Bill makes the 2025 fiscal framework redundant, citing that this proves that the entire budget process was unlawful.
He said parliament should formally withdraw the 2025 fiscal framework and revenue proposals.
“This entire budget fiasco should be a reflection for the minister of finance and his director-general that they are out of depth and pose a threat to the economic stability of the country and, by consequence, are a threat to the livelihoods of South Africans,” Thambo said.
South Africans want jobs and economic growth
He went on to say that the budget disregarded pressing problems like slow economic growth and unemployment.
“South Africans need jobs and economic growth urgently, and the state is the only institution with the capacity to respond, yet the National Treasury remains obsessed with an unscientific fiscal anchor strategy that will only plunge South Africa into deeper crisis.”
The Finance Ministry announced on Thursday morning that the VAT increase would be withdrawn, citing discussions with other stakeholders as the reason.
In order to prevent Godongwana’s 0.5% VAT increase from going into effect in May, the DA and EFF had sued him.
Their legal teams contended that the VAT hike was unconstitutional during the court hearing on Tuesday.
According to DA federal council chairperson Helen Zille, Godongwana’s legal team probably told him that the VAT increase would most likely be overturned in court because the case had been so persuasively argued.
“In that context, it seemed better for the minister to concede before he was perceived to have been forced to by the outcome of the DA’s court challenge, and that is what has clearly happened in the last week,” said Zille.
Godongwana would now attempt to preserve his reputation by claiming that the withdrawal was the result of talks with other parties, she added.
DA controlling balance of power
Zille further asserted that the ANC is still having trouble acknowledging that the public might now perceive the DA as controlling the balance of power.
“It is not my position to say whether or under what circumstances the GNU [government of national unity] should continue.
“What was the question? It was whether we should continue after what the ANC did, negotiating with parties outside of the coalition during the votes on the fiscal framework in the portfolio committee and in parliament.
“But we decided that we would still win this round, as our court case indicated that we were set to do, which is what has forced the minister to want to negotiate,” said Zille.
Mmusi Maimane, the leader of Bosa, stated that his party, in contrast to the DA and EFF, did not resort to legal action, understanding that the VAT negotiations would result in a no-increase agreement.
“When we voted in support of the fiscal framework, misinformation campaigns came at us fast and loud. But we didn’t waver,” said Maimane.
“The VAT increase has been blocked. And this is a victory for all of us, the people of South Africa. Leadership is not about noise; it’s about making the responsible calls that deliver results.”
