The uMkhonto weSizwe Party (MKP) has launched a fierce attack on the government’s tax policy, demanding the immediate reversal of any plans to increase value-added tax (VAT).
In a memorandum submitted to the National Treasury on Monday during a march at its Pretoria offices, the party condemned VAT as a weapon of economic oppression that disproportionately affects South Africa’s poorest citizens while shielding large corporations and financial monopolies.
This comes after Minister of Finance Enoch Godongwana, postponed the budget speech in February due to an outrage over the previously proposed two percentage points VAT increase, which would increase VAT from 15% to 17%.
After a review, the VAT was said to be proposed at a 0.75% increase.
The budget speech has now been postponed to March 12.
Ploy to keep blacks economically marginalised
In the memorandum, the party accused SARB and the National Treasury of deliberately maintaining economic structures that keep black South Africans in financial distress while enabling white-owned businesses to flourish.
It described the VAT increase as a “direct assault on the economic dignity of the poor” and called for urgent intervention to prevent further financial hardship for millions of South Africans.
The protest was attended by members of the MKP, including its youth and women’s leagues, alongside faith-based organizations, traditional leaders, and community representatives.
Tax the rich not the poor
“Instead of burdening the poor, the government must explore alternative revenue options measures including introducing a wealth tax on ultra-rich individuals to fund social programmes, increasing corporate tax to ensure that big businesses pay their fair share.
“Recovering the R400 billion lost through illicit financial flows and tax evasion by multinational corporations, the GNU refuses to act because it protects its white monopoly allies who defraud SARS and the country,” reads the memorandum in part.
The party also demands that the government recover the R92 billion that is owed to Eskom.
The MKP expressed outrage over what it called the government’s deliberate weakening of the working class through excessive taxation.
The party emphasised that VAT was a regressive tax, which places a heavier burden on lower-income households that spend a greater portion of their earnings on basic goods and services.
The party did not hold back in its criticism of the National Treasury, accusing it of continuously burdening the poor.
The memorandum further emphasised that VAT increases should not be considered.
