The IFP has once again defended its decision to vote in support of the budget last week, despite the fact that it included a 0.5% increase in value-added tax (VAT).
Velenkosini Hlabisa, the party’s president, stated that the VAT increase was a short-term solution and that the decision was made with the nation’s best interests in mind.
Hlabisa was speaking to the media in Durban on Monday after the party’s national executive committee meeting.
He emphasised that the IFP does not participate in the government of national unity (GNU) to bid on behalf of other political parties.
Social media disinformation campaign
He said the reason they are addressing the matter is because the party has become the target of a persistent social media disinformation campaign.
“Our support for the VAT increase is based on the firm belief that our country needs stability, certainty, and a government that puts the people first,” Hlabisa said.
“The IFP’s participation in the GNU and support for the budget is a clear expression of our unique contribution and commitment to putting the interests of the country first, ahead of our own personal interests as a party.”
According to Hlabisa, South Africa’s economy has stagnated for many years, and disinvestment has cost the country billions of rands.
Corruption and the terrible management of state-owned businesses have deterred
investors, he said.
Necessary step to support government revenue
He said: “We are therefore relying on a diminishing pool of resources to fund an increasing
pool of need.
“This increasing pool of need includes the salaries of civil servants, increasing social grants, free government services such as water and electricity, and free housing and other services.
“The maths just doesn’t compute. The IFP, after careful consideration and having made our submissions and proposals for the national budget, supports the 2025 fiscal framework and revenue proposals.
“We emphasise the need for prudent financial management, prioritisation of job creation, investment in infrastructure, and social support mechanisms that genuinely uplift citizens.”
He continued by saying that the IFP views the VAT increase as a necessary step to support government revenue and guarantee the continuous provision of social services and service delivery in light of the nation’s urgent fiscal challenges.
“We recognise that the decision to increase VAT is not taken lightly, as it impacts all South Africans.
“However, given the dire state of public finances, revenue collection shortfalls, and the need to maintain critical social programmes, we believe that this measure is a responsible step towards economic stability.”
