By Zelene Merrington
The calls come after an announcement by the Finance ministry (cap) that a contested 0.5 percentage-point Value Added Tax (VAT) increase would be reversed. These parties, along with a few others, voted against the adoption of the 2025 Fiscal Framework and Revenue Proposals in the National Assembly last month, and later applied for the Western Cape High Court to interdict the adoption of the framework. The DA and another opposition party, the Freedom Front Plus (FF+) are the only two parties in the Government of National Unity that voted against the budget.
Only a handful of parties did not support the increase. The DA took the lead to get it interdicted and to challenge the powers of the Finance Minister. DA Federal Council Chairperson, Helen Zille, says the reversal is a result of their court case.
“ A lot of negotiations had gone on since last Thursday and still in court papers the minister said the increase would go ahead and there was no alternative to it. It shows it was the DA crucial intervention was pivotal to make South Africans victorious,” said.
EFF Spokesperson and Member of the country’s Parliament, Sinawo Tambo, has cautioned that until the process is reviewed, celebrations about the reversal of the VAT increase may be premature.
“We are concerned about the celebrations about reversal whereas the minister knows very well as should’ve reflected in statement that proposal to introduce an amendment bill doesn’t effectively and unilaterally reverse the VAT hikes....the bill needs to serve before parliament and consistencies within legislation re money bills act, for VAT to be reversed. South Africans need to be cautious re the celebrations until these processes have unfolded,” Tambo said.
The Parliamentary leader of another opposition party, African Christian Democratic Party ), Steve Swart, says his party’s opposition against the VAT increase has been well documented.
“We are on record that ask for legal opinion on what believe was flawed process in committee. this concession seems to be made because of high court application. Undoubtedly, this is victory for democracy, concerned that it took two months of wrangling to get here,” Swart said.
SA’s Parliament is still considering its legal options on the DA and EFF legal challenge.
---SABC---