SACP demands wealth tax increase instead of VAT hike

IOL News

01-05-2025

SACP general secretary, Solly Mapaila, has called on Finance Minister Enoch Godongwana to replace the abandoned Value Added Tax (VAT) increase by increasing the wealth tax.
Image: Itumeleng English / Independent Newspapers
South African Communist Party (SACP) general secretary, Solly Mapaila, has called on Finance Minister Enoch Godongwana to replace the abandoned Value Added Tax (VAT) increase by increasing the wealth tax.
He was addressing the Cosatu May Day rally, which President Cyril Ramaphosa also addressed at Kees Taljaard Stadium in Middleburg, Mpumalanga, on Thursday.
Before delivering his speech, Mapaila, who had previously indicated that the SACP would contest future elections against the ANC, said 'down with the VAT increase', 'down with the GNU'.
Ramaphosa annoyed the SACP after establishing the Government of National Unity (GNU), which included the DA, when the ANC lost its support during the May 29, 2024, general elections.
Various political parties and labour unions were also angered when Godongwana attempted to increase VAT.
'We joined parties led by Cosatu and, in some instances, joined Saftu (South African Federation of Trade Unions) to fight against VAT,' he said.
Godongwana was expected to table his revised Budget late this month, which excluded increased VAT.
'At least they should bring back the percentage that they reduced in the last round of reduction of capital income tax.
'That would give us more than four times what they wanted to do with the VAT,' he said.
He said Godongwana should introduce measures that would enable the South African Revenue Service (SARS) to track down wealthy people who were dodging paying taxes.
'And recover, comrade president, as the commissioner of SARS indicated, almost R800 billion.
'That should be the main focus if R800 billion is in the hands of capitalists and they want to run away with it and not serve the interests of the people,' said Mapaila.
He said the DA, which was the major partner in the GNU, was a stumbling block in the transformation of the country through its opposition to the Basic Education Law Amendment Act and the National Health Insurance.
He said the DA was opposed to the Act so that the country could be dominated by white people through exclusive education and health services.
'They don't want the universal access to education at the nearest point of service, because they want exclusivity of whiteness in the country,' said Mapaila.
Justifying the GNU, Ramaphosa said it was 'the best way forward' in the aftermath of the general elections, although it was 'not without its challenges and contradictions'.
'While there are parties within the GNU that have historically opposed the transformation of our society and the interests of the working class, the GNU has agreed on certain strategic priorities and a programme of action that will take our country forward,' said Ramaphosa.
He said the ANC and its alliance partners have a task of managing the GNU challenges.
'We have seen some of the challenges of the GNU, most recently in the development and adoption of the national Budget.
'Following engagements between parties in the GNU, as well as with other parties in Parliament and different stakeholders, we have now reached an agreement that the Minister of Finance should table a revised Budget to Parliament,' said Ramaphosa.
Cosatu and various political parties also held rallies across the country.
In KwaZulu-Natal, Deputy President Paul Mashatile shared the podium with SACP national chairperson Blade Nzimande at Durban's Curries Fountain Stadium.
Mashatile said the ANC recognised the role of the working class in the development of the country's economy.
'We further recognise the sacrifices and hard work of our workers who wake up every morning to work for their families, more importantly, to make meaningful contributions to the economy of our country.