TAKE A HIKE

The Economic Freedom Fighters have called for Finance Minister Enoch Godongwana to fall on his sword and resign after the Treasury announced it was scrapping the 0.5 percent VAT increase.

The announcement was made late on Wednesday night after weeks of political jostling over the issue, which has caused huge fractures in the Government of National Unity (GNU). 

In a statement, EFF spokesperson Sinawo Thambo described the ploy of a VAT hike as “misguided, ill-conceived, and reckless”.

Thambo says in the statement: “The EFF calls for the immediate resignation of the Minister of Finance and the Director-General of the National Treasury.

“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.

The EFF has called on Speaker Thoko Didiza to release all correspondence from the Minister of Finance and demands that she convenes a meeting of all leaders of political parties in Parliament.

The statement continues: “Effectively, the country does not have a budget, and the Finance Minister failed to table a lawful budget by the 31st of March 2025, as required by Section 27 of the Public Finance Management Act.

“We call for the National Assembly and the National Council of Provinces to convene and adopt resolutions to withdraw the adopted 2025 Fiscal Framework and Revenue Proposals on the basis that they were adopted following an unprocedural meeting which approved the reports.

It is expected that the finance minister will table a revised budget. 

Regarding the VAT hike, the EFF said they would consider only a written out-of-court settlement proposed by Godongwana. 

They added: “However, we maintain that without a full withdrawal and reset of the budget process, whatever follows will remain illegal and unconstitutional.”