South Africans shaped VAT reversal: 'When people speak, we must listen'
CAPE TOWN - The value-added tax (VAT) reversal decision was shaped by South Africans and not just political debate.
This is according to Finance Minister Enoch Godongwana.
The minister says he was also encouraged by the passion shown by South Africans who've been engaged with the developments leading up to the decision to reverse the 0.5% VAT increase.
He addressed the media on Wednesday, where he shed light that he would table a revised budget on 21 May 2025.
ALSO READ: Treasury's options to make up for revenue shortfall not straightforward: IEJ
"Today [Wednesday], there's clarity, VAT will remain at 15%. This decision was shaped not only by political debates but, importantly, by the voices of South Africans. When people speak, we must also listen."
He also admits that the discussions with other parties over the last few months were far from easy.
"Because of the nature of coalition politics, we couldn't find consensus both in Cabinet, and in the Legislature. I'm not going to put blame on anybody, but that process on its own, because all of us are new in this thing was messy."
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Daily Maverick
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It is still a Budget that ultimately punishes South Africans for the sins of the ANC,' she said. 'We absolutely want to see more catalysts for economic growth in the Budget… We gave alternatives — we proposed alternatives — that could look different for income generation for the state versus actually burdening South Africans further.' Hlazo-Webster said the National Treasury had not considered any of Bosa's proposals on income generation in the Budget. 'Ultimately, what this means is that the ANC's not listening to the people,' she said. 'This is still a very tax-heavy Budget, it's a stagnant budget. It's a Budget that doesn't speak to how [to] grow South Africa's economy. 'Shared vision of cooperation' The fiscal framework is a key step in the budgeting process; it establishes economic policy and revenue projections and sets the overall limits to government spending. This report must be adopted within 16 days from when Godongwana tables the Budget. 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When the Patriotic Alliance's Ashley Sauls spoke in favour of the report, MK party and Economic Freedom Fighters MPs shouted 'Free Palestine' in reference to the party visiting Israel for a ' fact-finding ' mission amidst Israel's ongoing assault on Gaza. ActionSA's Alan Beesley said he was 'proud' of the role his party played in the VAT hike reversal. From the DA seats, one MP shouted: 'No deal this time around, Beesley'. The EFF also tried to claim victory for the reversal. DM
