Latest news with #AmendmentofRevenueLawsBills
The South African
24-04-2025
- Business
- The South African
EFF calls for 'incompetent' Godongwana's head over VAT increase reversal
Although the Economic Freedom Fighters (EFF) has welcomed the decision to scrap the proposed VAT increase, the party has called for the immediate resignation of the Minister of Finance Enoch Godongwana. The party is among those who rejected the proposed 0.5 percentage point and even approached the Western Cape High Court to challenge the adopted fiscal framework which paved the way for the VAT hike. As previously reported by The South African , National Treasury said Godongwana would introduce the Rates and Monetary Amounts and the Amendment of Revenue Laws Bills (Rates Bill), which proposes to maintain the VAT rate at 15% from 1 May, instead of the proposed increase announced in the 2025 Budget Speech. National Treasury said the decision to waive the VAT increase followed extensive consultations with political parties, and careful consideration of the recommendations of the parliamentary committees. Following the decision, the Red Berets maintained that the 2025 Budget fails to appreciate the degree and the depth of the economic crisis South Africa is confronted with, adding that the budget failed to respond decisively to the crisis of unemployment and poor economic growth that now threatens a national economic collapse. 'South Africans need jobs and economic growth urgently, and the state is the only institution with the capacity to respond — yet the National Treasury remains obsessed with an unscientific fiscal anchor strategy that will only plunge South Africa into a deeper crisis,' the EFF said. The EFF also said the withdrawal of the 2025 Division of Revenue Bill and the Appropriations Bill effectively means that the budget is now withdrawn. It also means that the Minister of Finance has failed to comply with the legal and constitutional obligations governing the budget process. Furthermore, the party called for the immediate resignation of the Minister of Finance and the Director-General of the National Treasury saying the entire budget fiasco should be a reflection for the Minister of Finance and his Director General that they are out of depth and pose a threat to the economic stability of the country and, by consequence, are a threat to the livelihoods of South Africans. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
![Government U-turns on VAT hike [video]](/_next/image?url=https%3A%2F%2Fwww.thesouthafrican.com%2Fwp-content%2Fuploads%2F2025%2F04%2FGpKfCt1XgAAoglA.jpeg.optimal.jpeg&w=3840&q=100)
The South African
24-04-2025
- Business
- The South African
Government U-turns on VAT hike [video]
Watch the full version of the ' BREAKING: Godongwana gives in as proposed VAT increase scrapped' article – in a minute. National Treasury has confirmed that the decision to increase value-added tax (VAT) – to take it from 15% to 15.5% – has been reversed. The proposed VAT hike, which would have come into effect on 1 May, was announced by the Minister of Finance, Enoch Godongwana, when he delivered his delayed Budget Speech for the 2025-2026 financial year, leading to warring between political parties within and outside the ANC-led Government of National Unity (GNU). Notably, the decision comes after the Democratic Alliance (DA) and Economic Freedom Fighters (EFF) had approached the Western Cape High Court to challenge the adopted fiscal framework, which paved the way for the proposed VAT increase. For the latest political news, bookmark The South African website's dedicated section for free-to-read content In a statement, National Treasury said Godongwana would introduce the Rates and Monetary Amounts and the Amendment of Revenue Laws Bills (Rates Bill), which proposes to maintain the VAT rate at 15% from 1 May, instead of the proposed increase announced in the 2025 Budget Speech. Looking for quick updates? Watch News in a Minute videos on The South African's YouTube page for all the key stories you need to know! Catch all the latest videos on news, lifestyle, travel, sports and more – there's always something to watch! Follow us on Facebook, Instagram, and BlueSky to stay connected and get your news on the go!
The South African
24-04-2025
- Business
- The South African
BREAKING: Proposed VAT increase reversed
The Treasury has confirmed that the decision to increase Value Added Tax (VAT) has been reversed. The proposed VAT hike which would have been effective on 1 May was announced by Finance Minister Enoch Godongwana when he delivered his Budget Speech for the 2025/2026 financial year was a contentious issue for parties within the ANC-led Government of National Unity (GNU Notably, the Finance Minister's decision comes as the Democratic Alliance (DA) and Economic Freedom Fighters (EFF) approached the Western Cape High Court for the adopted fiscal framework to be scrapped. In a statement, Treasury said Godongwana will introduce the Rates and Monetary Amounts and the Amendment of Revenue Laws Bills (Rates Bill), which proposes to maintain the VAT rate at 15% from 1 May, instead of the proposed increase announced in the 2025 Budget Speech. Treasury said the decision to waive the VAT increase followed extensive consultations with political parties, and careful consideration of the recommendations of the parliamentary committees. Notably, by not increasing VAT, estimated revenue will fall short by R75 million over the medium term. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
