Latest news with #Nolutshungu
The Citizen
27-04-2025
- Business
- The Citizen
EFF challenges budget process, calls for reset and VAT clarity
The EFF warned that Sars risked undermining public trust by acting on executive announcements rather than properly enacted legislation. The Economic Freedom Fighters (EFF) filed supplementary court papers in the Western Cape High Court on Saturday to intervene in the legal challenge regarding Parliament's adopted fiscal framework and revenue proposals. The political party is taking a stand to defend constitutional principles and protect South Africans from what they consider an unjust VAT increase. This legal action follows Finance Minister Enoch Godongwana's sudden reversal of the planned VAT increase. On Thursday, shortly after midnight, the National Treasury announced that the proposed VAT increase had been canceled and would remain at 15%, ending a two-month dispute over the controversial tax hike. ALSO READ: DA files supplementary affidavit to block the proposed VAT hike EFF's constitutional concerns on budget In their court filing, the EFF expressed 'deep concerns' about the conduct of the Speaker of the National Assembly and parliamentary secretaries, accusing them of entangling Parliament in partisan politics. The party maintains that South Africa currently has no lawful budget, arguing that the fiscal framework and revenue proposals were adopted through processes that violate the Constitution and the Money Bills Amendment Procedure and Related Matters Act. 'The only legitimate and practical way forward is a full reset of the 2025 budget process to re-establish constitutional compliance and fiscal legitimacy,' the EFF asserted. ALSO READ: EFF calls for 'apartheid tax' counter instead of VAT hike [VIDEO] EFF challenge to Sars commissioner In addition to the court filing, the EFF sent an urgent letter to South African Revenue Service (Sars) Commissioner Edward Kieswetter questioning the legal basis for the tax authority's communication regarding the VAT rate adjustment. EFF National Chairperson and Parliamentary Chief Whip, Nontando Nolutshungu, criticised Sars for creating confusion by allowing two different VAT rates to operate simultaneously until May 15. 'We must further express our alarm at the absurdity of SARS's pronouncement permitting two VAT rates — 15% and 15.5% — to operate simultaneously until 15 May 2025. 'This reckless allowance not only sows confusion among vendors and consumers but also creates fertile ground for exploitation, price manipulation, and criminality,' Nolutshungu wrote. Legislative authority questions The EFF demanded clarification on how Sars could issue binding instructions to VAT vendors without proper legislative processes being completed. 'We seek to understand how such administrative instructions could be issued when Parliament has not yet lawfully repealed or amended the relevant fiscal framework through proper legislative processes,' Nolutshungu stated in the letter. The party warned that Sars risked undermining public trust by acting on executive announcements rather than properly enacted legislation, cautioning that they reserved the right to pursue legal remedies if Sars failed to provide a satisfactory explanation within 24 hours. ALSO READ: Budget 3.0 not unexpected, possible decrease in social grant increase Godongwana's VAT reversal Godongwana's reversal comes after significant opposition to his planned implementation of an initial 0.5 percentage point VAT increase on May 1, which would have been followed by another 0.5 percentage point increase on April 1 next year. The National Treasury confirmed that Godongwana would introduce legislation to formally reverse this decision, keeping the VAT rate at 15%. EFF calls for parliamentary integrity The EFF urged Parliament to avoid political gamesmanship and prioritise its constitutional obligations. 'Parliament must remember that in terms of Section 44(1)(a)(ii) of the Constitution, the legislative authority to pass money bills resides with the National Assembly, and not with any member of the Cabinet,' the party emphasised in their statement. The party called for decisive leadership during this critical period, advocating for 'a competent, consultative, and transparent Parliament that acts with integrity' and serves the interests of all South Africans, particularly the poor and working class. NOW READ: Treasury reverses proposed VAT hike, will remain at 15%
IOL News
25-04-2025
- Business
- IOL News
Godongwana's new Bill aims to abolish VAT hike before May deadline
The new Rates and Monetary Amounts and Amendment of Revenue Laws Bill tabled by Finance Minister Enoch Godongwana in Parliament on Thursday has been referred to the Standing Committee on Finance and the Select Committee on Finance for information. Image: Independent Newspapers Finance Minister Enoch Godongwana has officially introduced a new Bill in Parliament to replace the proposed increase in Value Added Tax (VAT) ahead of its scheduled implementation date of May 1. This emerged in the Parliament's communiqué, known as Announcements, Tablings and Committee Reports (ATC) published on Thursday night. The tabling of the new Rates and Monetary Amounts and Amendment of Revenue Laws Bill comes after Godongwana announced earlier on Thursday his decision to scrap the VAT increase amid the court case instituted by the DA and EFF in the Western Cape High Court and negotiations involving the ANC and other small parties. The ATC notice said the new Bill has been referred to the Standing Committee on Finance and the Select Committee on Finance for information. It also said the Bill will be referred to the Joint Tagging Mechanism (JTM) for classification. 'The Bill may only be classified after the expiry of at least seven parliamentary working days since introduction,' reads the ATC. The introduction of the new Bill scrapping the 0.5% VAT increase was done simultaneously with the withdrawal of the Appropriation Bill and the Division of Revenue Bill. 'The Bill seeks to pre-empt the increase of the rate in terms of Section 7 of the Value-Added Tax Act, 1991, announced by the Minister of Finance in the national annual Budget of 2025,' reads the content of the new Bill. In a twist of events, the EFF has written to National Assembly Speaker Thoko Didiza, raising constitutional and parliamentary implications from Godongwana's withdrawal of Budget-related bills. Chief whip Nontando Nolutshungu said despite their pending court challenge, they remained committed to engaging through parliamentary structures to resolve the matter. Nolutshungu reminded Didiza that the Red Berets had written to her, cautioning that the report of the Standing Committee on Finance had been adopted unprocedurally and should have been withdrawn. 'Instead of constructively addressing these concerns, you dismissed them outright and allowed the matter to proceed despite knowing the legal and procedural implications,' she said. Nolutshungu said the EFF was now seeking clarification on whether Godongwana intended to also withdraw the 2025 Fiscal Framework and Revenue Proposals that were adopted by the National Assembly. 'If so, we request that you advise the National Assembly on the appropriate constitutional and procedural mechanisms that will be used to reverse a resolution of Parliament, given that such resolutions have legal standing and implications,' wrote Nolutshungu. She urged Didiza to convene a meeting of all leaders of political parties represented in Parliament to deliberate Godongwana's decision to withdraw critical Budget instruments and the path towards legal, economic, and institutional certainty. The DA has indicated that despite Godongwana wishing to enter into an out-of-court-settlement, the battle was not yet over. Federal council chairperson Helen Zille told the media on Thursday that they were expecting a formal settlement proposal from Godongwana's lawyers. She had indicated that there was still the issue of the acceptance of the fiscal framework by the portfolio committee. 'There is no precedent that we know of how that can be set aside.'
