logo
GNU parties fuming after DA claims victory over VAT hike reversal

GNU parties fuming after DA claims victory over VAT hike reversal

The Herald25-04-2025

The DA claiming victory over the National Treasury's withdrawal of the VAT hike has pitted it against the majority of its GNU partners.
In a joint briefing held by the 11 political parties that supported the budget, including those in the GNU, the DA came under fire for claiming that the VAT hike was reversed because of its court challenge.
The ANC, ActionSA, IFP, Rise Mzansi, UDM, Bosa, Al Jama-ah, Good, NCC, PAC and PA held a joint conference after the announcement that the much-contested VAT hike would be halted.
Some of the parties laid into the DA, saying the party wanted to use the budget to 'extort' the finance minister.
This comes as the DA has been publicly criticised for trying to use the budget talks to renegotiate legislation such as the Basic Education Laws Amendment (Bela) Act, the National Health Insurance Act and the Expropriation Act.
Rise Mzansi leader Songezo Zibi told the media that the successful talks among the parties which led to the finance minister Enoch Godongwana finally agreeing to reverse the VAT increase were about stopping the DA from using the budget to score wins in the GNU.
'This process has been about freeing the finance minister from extortion. We can now proceed with the budget without also having to talk about legislation that has already been passed by parliament,' said Zibi. 'This is what this has been about. We cannot hold budgets hostage to other political priorities that have nothing to do with appropriation.'
Zibi said they could not allow the DA to make South Africans wait longer for land justice because the DA knew they could use the emotional VAT hike issue to negotiate the Expropriation Act.
'Those were the points of extortion and we must challenge them,' said Zibi. 'But I can tell you, all of the points of extortion they placed on the table, they are not on the table any more. If anybody wants to reverse legislation they must earn a majority, amend the legislation, take it back to parliament and win that amendment to the legislation.'
The PA's Kenny Kunene also accused the DA of trying to use the budget talks to extort the GNU.
'The DA in its negotiations over VAT increase made some demands. The DA indicated that they will vote for the VAT increase if a certain port was privatised. If the NHI was removed. If the Bela Act was removed,' said Kunene.
'So the DA was going to vote for a VAT increase had the ANC and the GNU parties agreed to be extorted by them. So when the extortionists could not get their way they ran to the courts.'
Kunene said the DA 'had no moral authority' to claim victory over the VAT hike removal as they were not part of the talks.
'So the DA waking up this morning after seeing the statement of the minister and claiming is quite hypocritical because they never rejected the VAT increase at the beginning. Instead they tried to use it to privatise what South Africans own. They tried to use it to get positions in the GNU. They tried to use it to change what parliament has already resolved on,' said Kunene. 'So a party of extortionists has failed to serve South Africans on a very important matter of national interest.'
The IFP's Mkhuleko Hlengwa accused the DA of trying to play both sides — being both in the government and in the opposition.
'We believe that you can't be half pregnant. You can't be in government today and in opposition tomorrow. Either you are in or out for the purposes of consistency within what we do in the budgetary processes and in governing generally so that we can be in a position to resolve the problems,' said Hlengwa.
TimesLIVE

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Health association takes legal action against NHI Act
Health association takes legal action against NHI Act

Mail & Guardian

timean hour ago

  • Mail & Guardian

Health association takes legal action against NHI Act

File photo by James Oatway The Health Funders Association this week launched a legal challenge against the President Cyril Ramaphosa The ANC, which governed the country solely until being forced into a national coalition after the polls, says the NHI is intended to provide universal and comprehensive health coverage to all South Africans. But it has faced fierce criticism from the private healthcare sector and parties such as the Health Funders Association chief executive Thoneshan Naidoo acknowledged this week that 'South Africa needs a healthcare system that delivers equitable, quality care to all [and] we fully support that vision.' But he added: 'In its current form, and without private sector collaboration, the NHI Act is fiscally impossible and operationally unworkable, and threatens the stability of the economy and health system, impacting everyone in South Africa.' The association filed its application at the Pretoria high court, joining five other medical entities that are fighting the law. The It argued that the framework in its current form was not fiscally feasible and would also have adverse effects on South Africa's healthcare and economic outcomes. 'The steep tax increases required to fund the NHI will reduce disposable income, curb consumer spending across all sectors of the economy and may well trigger an exodus of high-income taxpayers,' it said. 'At the same time, destabilising the private healthcare sector will deter investment, put jobs at risk, and slow The association's position is premised on a report by Genesis Analytics, published this week, which showed that the 'NHI Act requires unsustainable tax increases while reducing healthcare access for medical scheme members'. It said the analysis also revealed South Africa's racially diverse medical scheme membership, in which more than 68% of members are black, Indian or coloured, and up to 83% earn less than R37 500 a month. 'The proposed NHI would, therefore, disproportionately impact working-class households who currently rely on medical schemes for quality care.' Modelling by Genesis Analysis showed that it would be impossible to raise the funds required for NHI, 'even under the most optimistic assumptions'. 'For NHI to fund a level of care equivalent to what medical scheme members currently receive, as government has indicated is the intention, the Genesis model shows that personal income tax would need to increase by 2.2 times (a 115% increase in tax) from the current average rate of 21% to an average of 46% of income.' This, it said, would push marginal tax rates in the lowest income bracket from 18% to 41%, and in the highest bracket from 45% to 68%. Building its case, the association said the Genesis model projected that more than 286 000 additional healthcare professionals would be required to fulfil the NHI vision. This is more than twice the number of general practitioners, nurses and pharmacists and three times the number of specialists. 'NHI will therefore place significant pressure on healthcare workers and addressing these capacity gaps will require significant time and investment,' the association said. Naidoo added that South Africa does not have enough skilled workers to deliver the NHI's mandate. 'By driving down service tariffs, the NHI risks accelerating the emigration or exit of healthcare professionals from the sector altogether.' The country is already facing a medical professional 'brain drain'. A survey conducted last year by the South Africa Medical Association, which represents approximately 17 000 doctors across South Africa, showed that as many as 38% of its members intended to leave the country in response to the implementation of the NHI scheme. Last month, Ramaphosa defended the Act after the Board of Healthcare Funders, which represents most private medical schemes, said he flouted his constitutional duty by failing to scrutinise its constitutionality when he signed the NHI into law. It added that the president ignored submissions that pointed to the patent constitutional defects in the legislation. The Pretoria High Court ruled in favour of the board. Ramaphosa launched an appeal, arguing that the court lacked jurisdiction in the matter and erred in finding that his decision to sign the new law was reviewable. The court found no merit in his argument on the separation of powers and said the step of assenting to a Bill was but part of a lawmaking process that was a reviewable exercise in public power.

EFF loses fuel levy court challenge
EFF loses fuel levy court challenge

Mail & Guardian

timean hour ago

  • Mail & Guardian

EFF loses fuel levy court challenge

EFF leader Julius Malema. (X) The The party's application, lodged against Finance Minister The EFF argued that it was unlawful because it was not introduced through a Money Bill, as required by section 77 of the Constitution. The party described the court's ruling as 'a betrayal of the poor and the working class' and accused Godongwana's office of sidestepping democratic procedures in the management of public finances. 'Taxation without representation is arbitrary and unconstitutional,' the party said. The ANC-led government of national unity was doing everything in its power 'to protect the interests of those who continue to benefit from the apartheid economy, while subjecting the masses of our people to economic misery'. Godongwana has insisted that he acted within existing legislation. In his He added that it had been frozen since 2021, and the increase was necessary to preserve the real value of the levy in the face of inflation and declining revenue. He warned that halting the increase would result in a R3.5 billion shortfall for the fiscus, necessitating further borrowing, spending cuts or alternative tax increases. 'The fuel levy is not a new tax. It is a regulatory adjustment falling under existing legislation and its increase does not require a Money Bill,' Godongwana argued in the affidavit, adding that freezing the levy any further would compromise the integrity of the budget and limit the state's ability to deliver services. The court's ruling allowed the increase to proceed and, on Wednesday, fuel prices rose accordingly for the month of June. However, a dip in global oil prices and modest strengthening of the rand brought slight relief for motorists. EFF leader 'It is not the EFF that got rejected; it is the people of South Africa who lost. When you increase fuel, you increase everything, transport, food, the cost of living. Our people are already suffering. This is an extra blow to the working class,' he said. The EFF would not abandon the matter, Malema said, indicating that it was considering further legal avenues, as well as a legislative push in parliament to close loopholes that allow the treasury to act unilaterally. EFF treasurer general Omphile Maotwe, who has led the party's engagements on budget matters, reiterated its position that the matter should have come before parliament. 'The levy seeks to recover revenue after the courts invalidated the unlawful VAT increase proposed earlier this year. By using the Customs and Excise Act to bypass section 77 of the Constitution, the minister is undermining the democratic function of parliament and the people's right to participate in fiscal policy decisions,' she said. Maotwe said the EFF would submit proposals to amend the relevant sections of the Customs and Excise Act and the Money Bills Amendment Procedure and Related Matters Act to ensure no future taxation could be implemented without a parliamentary vote. While the EFF's application was dismissed, legal observers say the court did not definitively rule on the constitutional questions raised, which could leave the door open for further challenge. While the government is technically within its rights to use the Customs and Excise Act to amend levies, the broader question of public accountability in tax decisions remains unresolved, constitutional law expert professor Pierre de Vos said. 'There's a grey area here. The Constitution requires that money bills originate in the National Assembly, but there are long-standing statutes like the Customs and Excise Act that give the executive certain powers. Whether those powers are now unconstitutional is a debate we may see return to the courts.' The EFF said it would use all platforms, legal and political, to hold the treasury accountable. 'We will not rest while unelected officials continue to impose taxes behind the back of parliament. The people must have a voice in every cent that is taken from their pockets,' Malema said.

2 suspects arrested in connection with murder of IFP deputy chief whip
2 suspects arrested in connection with murder of IFP deputy chief whip

The Citizen

timean hour ago

  • The Citizen

2 suspects arrested in connection with murder of IFP deputy chief whip

2 suspects arrested in connection with murder of IFP deputy chief whip Police have made a breakthrough in the murder investigation of IFP Deputy Chief Whip Khethamabala Sithole and have arrested two suspects. The Witness reports that a task team established to probe Sithole's death made the arrests this week. Police spokesperson Colonel Mavela Masondo says the two suspects have been charged with two counts of attempted murder, following the incident which took place at Buyafuthi hostel in Katlehong last Saturday. 'The team brought in three people for questioning. Two of them, aged 30 and 32, were linked to the incident, while the third person was released. More arrests are expected as the investigation continues. 'The suspects will be appearing [in] the Palmridge Magistrate's Court today,' Masondo says. Masondo says Sithole was killed by the suspects on Saturday evening in Katlehong, Gauteng. 'It was reported that unknown men opened fire on the group of people gathered for a meeting. Sithole was declared dead on the scene while two more people were taken to hospital with gunshot injuries.' Provincial secretary Alco Ngobese was also injured in the shooting and is receiving treatment. IFP national spokesperson Mkhuleko Hlengwa described Sithole as 'a hard-working servant leader of the people and our country'. Sithole joined the IFP in his youth and served in various party structures, including as IFP Gauteng provincial chairperson. The EFF in Gauteng said, earlier in the week, the death may have been politically motivated and slammed political intolerance. 'Political killings are unacceptable and undermine our democracy. We therefore condemn all acts of political violence and urge all parties to show maximum tolerance and respect for opposing views. Democracy must be built on peace, not violence.' The Good Party also shared its condolences. 'Violence has no place in our democracy. May his soul rest in peace.' The ANC also paid tribute to Sithole on Sunday. 'We condemn this brutal act and call for urgent intervention by law enforcement to bring the perpetrators to justice,' the ANC said. Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store