Economy

SA's opposition party stands firm against 2025 budget, rejects VAT hike

Date: Apr 12, 2025

South Africa’s (SA) Economic Freedom Fighters (EFF) have made it clear they will not support the 2025 national budget, saying the proposed financial plan deepens inequality and places an unfair burden on the poor.

This firm stance comes despite a meeting in Sandton on Thursday with a senior African National Congress (ANC) delegation led by secretary-general Fikile Mbalula. The engagement was part of the ANC’s efforts to consult opposition parties over contentious aspects of the budget, including the proposed Value Added Tax (VAT) increase.

In a statement released after the meeting, the EFF stressed that their attendance should not be interpreted as a sign of cooperation or compromise.

“Our engagement must not be mistaken for participation in seeking alternatives to the VAT increases,” the party said. “The budget in its current form punishes the poor.”

The red-beret party has been vocal in its opposition to what it sees as regressive fiscal measures, arguing that the VAT hike will hit low-income households the hardest at a time when South Africans are already grappling with rising food prices, high unemployment, and limited access to basic services.

The ANC has defended the budget as a necessary step to stabilise the country’s economy and ensure sustainable public spending. However, critics like the EFF argue that the government should be targeting wealthier individuals and corporations rather than shifting the burden onto the poor.

--ChannelAfrica--

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