Parties that were in negotiations with the ANC on the Fiscal Framework have criticised the DA for claiming victory on the VAT withdrawal.
This is after the Finance Ministry announced that the 0.5% VAT increase will no longer be in effect from May 1.
Victory not for those who went to court
Herman Mashaba, ActionSA leader, said it should be noted that this victory does not belong to those that approached the court, referring to the parties as opportunistic.
Mashaba described the situation as bizarre because the DA, which is in the government of national unity (GNU), had approached the courts instead of negotiating the issue, and are now claiming credit.
“The VAT reversal was achieved by political parties that were willing to put their differences aside and demonstrate the maturity required to find an alternative to a VAT increase.
“These parties adopted a fiscal framework with the strict condition that a 30-day period would be used to assess revenue alternatives to a VAT increase,” said Mashaba.
He emphasised that ActionSA opposed the increase from the beginning and that it stood firm throughout.
Mashaba claimed that the decision to adopt the fiscal framework was not about gaining power or positions.
No favours for ActionSA
“There have been no discussions about joining the GNU. And there have been no positions promised to ActionSA. There have been no positions sought by ActionSA,” said Mashaba.
He also credited Alan Beesley, ActionSA MP, for putting forward the condition to reverse the VAT hike.
“It is highly appropriate for me to acknowledge the ANC and the finance minister for their role in our negotiations. Our engagements were conducted in good faith, with maturity, and with the best interests of the country in mind.
“Nobody attempted to mislead or dupe anyone else. There was an absolute focus on the budget and nothing else,” said Mashaba.
Mmusi Maimane, Build One South Africa (BOSA) leader, expressed relief at the new development. He said he appreciated that they were able to speak to National Treasury to share ideas. And they were able to put proposals on how revenue can be increased.
BOSA grateful for work done by parties
He deemed it important to acknowledge the work that has been put in Parliament to ensure that the 0.5% VAT increase was scrapped.
“I want to say I am grateful and thankful for the parties that are here for the leadership exercised. For the passion and the willingness to hear. What is clear and a common cause is that today is the victory for the people of South Africa. It is only but a start,” said Maimane.
Fikile Mbalula, ANC secretary-general, said the negotiations process had already shown a way forward before the Easter holidays. He added that the parties involved understood where the negotiations were standing.
Victory belongs to nobody but a collective
Mbalula said even the ANC had affirmed at this point that the VAT increase should be reversed. Granted that there are alternative sources to address the shortfall.
“There is no victory that is being claimed here. The fact that political parties chose the route of the courts in itself is their own determination,” said Mbalula.
“In this particular instance, the pronouncement by National Treasury was made earlier than whatever that they were asking from the court. We have never asked the DA to withdraw the case in court because that is their call. And in our meeting we did talk about the case. But they said they are already in court and are going ahead with the case,” said Mbalula.
