Political parties claim withdrawal of VAT hike not due to DA, EFF court challenge
JOHANNESBURG - Political parties within and outside the Government of National Unity (GNU) claim the withdrawal of the value-added tax (VAT) increase had nothing to do with the Democratic Alliance (DA) and Economic Freedom Fighters (EFF)'s court challenge.
Despite being a GNU partner, the DA took its bid to reject the 0.5 percentage point VAT hike to the Western Cape High Court, but a judgment hasn't been handed down yet.
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The DA has claimed victory for the reversal of the VAT increase on Thursday morning, saying its legal challenge put pressure on National Treasury to find alternatives to the VAT hike.
During a multi-party media briefing in Sandton on Thursday, GNU partners and opposition parties accused the DA of acting in bad faith during negotiations on the budget impasse.
The political maturity of the DA has come under question, with RISE Mzansi leader Songezo Zibi slamming it for how it went about rejecting the contentious VAT increase.
"There are going to be difficult days ahead, but I think it's quite clear who's got the maturity to be in the room when tough decisions have to be made and who's not."
African National Congress (ANC) Secretary-General Fikile Mbalula said the withdrawal of the VAT hike was a result of the inter-party talks.
"This is a process that required conversations among us, and I wish to state that the ANC and all these political parties agreed to pursue alternatives of funding the budget."
Patriotic Alliance (PA) deputy leader Kenny Kunene said the DA was not the messiah it so dearly claimed to be.
"A party of extortionists has failed to serve South Africans on an important matter of national interest. So, South Africans, don't be misled."
Government will now begin the process of reviewing government expenditure to address the projected revenue shortfall.
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IOL News
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