EFF and DA Unite Against VAT Increase, Parties Won’t Support 2025 Budget in Its Current Form

• Minister of Finance Enoch Gondongwana presented the budget on 12 March to the National Assembly
• The 2025 Budget Speech didn't include a 2% Value-Added Tax increase but did feature a 0.5% hike
• The Democratic Alliance and Economic Freedom Fighters rejected the budget in its current form

Briefly News journalist Byron Pillay has dedicated a decade to reporting on the South African political landscape, crime, and social issues. He spent ten years working for a local newspaper before transitioning to online journalism

WESTERN CAPE - The Democratic Alliance and Economic Freedom Fighters are adamant that they won’t support the budget in its current form.

Minister of Finance Enoch Gondongwana presented the budget on 12 March to the National Assembly in Cape Town.

While the reworked budget did not include a 2% Value-Added Tax increase, which forced the postponement of the first speech, there was a 0.5% increase included. Next year the VAT will go up another 0.5%, bringing the rate to 16% by 2027.

Read also

Civil groups blast Enoch Godongwana for SRD grant comment, claim minister is neglecting the poor

EFF won’t support increase of any kind

Speaking to the media outside Parliament, EFF leader Julius Malema said National Treasury was playing tricks on everyone, adding that 2% was originally pitched but then it was changed to 0.5%.

He also reiterated his party’s stance that they would not vote for the budget in its current form.

“We will not support any form of increase on VAT,” Malema said.

He added that corporate tax should be increased and that there should be a tax on the rich.

“Let there be a tax on the wealthy people of South Africa who buy buffaloes for R22 million. Those people should be made to pay,” he said.

A buffalo bull named Magic was recently sold for R22 million at the Piet du Toit Wildlife Auction in the North West. The bull was bought by four buyers.

You can view Malema’s thoughts on the budget below. The EFF leader has been vocal of the budget speech previously, criticising the government for its postponement.

Read also

Fikile Mbalula says ANC won't tolerate cadre deployment that prioritises connections, SA has doubts

DA against an increase in taxes

Much like the EFF, the DA also said it would not support a budget that included an increase.

Party leader John Steenhuisen said that they wanted a budget that focused on economic growth and jobs, adding that they were happy to negotiate towards finding a budget, but not one that spoke to the cycle of borrow, tax, spend cut.

Steenhuisen also stated that the party would not be supporting the budget in its current form and therefore there was no parliamentary majority.

“The ANC VAT budget doesn’t have a majority, and the DA won’t give it one. It is now up to the ANC to fix the mess it has created,” the party reiterated in a statement released on social media after the budget speech.

Social grants get R284 billion boost

Briefly News also reported that Godongwana announced that R284.7 billion would be allocated to social grants in 2025/26.

Read also

MK Party threatens nationwide shutdown if budget speech includes VAT increase, social media divided

The allocation means that social grants will see an increase this year, with pensioners earning R130 more a month.

The increase is significantly more than last year's allocation, where pensioners received a R100 extra every month.

Source: Briefly News