After taking to the streets of Pretoria in protest of the proposed 2% VAT increase, the uMkhonto weSizwe (MK) Party warned Finance Minister Enoch Godongwana that it would ‘make South Africa come to a standstill’ should the hike be implemented, reports Cape {town} Etc.
Hundreds of party members and supporters participated in the march to the offices of the South African Reserve Bank (SARB) in Pretoria on Monday, 10 March, while President Cyril Ramaphosa’s cabinet was finalising the postponed budget speech set to be tabled in parliament by Godongwana later today, 12 March.
Godongwana proposed the two-percentage-point hike to address an R60 billion budget shortfall last month when the budget speech was initially set to take place. The plan, however, sparked fierce opposition, leading to the unprecedented postponement of the February budget speech.
Speaking to the media, MK’s parliamentary chief whip Mzwanele Manyi explained that the party’s previous attempts to address the current issue fell on ‘deaf ears.’
‘Our members participate in the standing committee on Finance in Parliament and have raised these issues, but to deaf ears. We’ve written letters to the Minister. Nothing comes of it,’ said Manyi.
‘So, we are forced to be here on the streets. Our message is very simple to the minister of finance – we are saying no to any increase in the VAT.’
Manyi argued that there are alternative avenues with less effect on the working class that can be used to raise money, adding that MK ‘even have a scope to actually reduce the VAT by two percentage points’.
‘SARS is ready to go and rake out R800 billion. But only if they are assisted,’ said Manyi.
‘We are saying we must clamp down on illicit financial outflows. These multinationals use price transfer schemes to evade tax. We need to clamp down on that, along with corruption.’
Manyi also argued that the government’s plan for zero-rated foods does little to alleviate the financial stress on citizens.
‘We are not opposed to the zero-rating of some foods, but we are saying that it is not enough. There shouldn’t be a trade-off between zero-rating food and increasing VAT,’ explained Manyi.
‘Increasing VAT brings inflationary pressure, especially on poor people, who not only need food but are also burdened with other essential costs such as transport and electricity. This thing about zero-rating the food basket is generally a smokescreen.’
Manyi also called for corporate tax to increase by 1% as well as implementing a wealth tax on the country’s richest citizens as alternative solutions.
In the memorandum handed over by the party on Monday, MK accused the GNU of prioritising white monopoly capital and demanded that VAT remain the same.
‘If VAT goes up by two percentage points or by 0.75, it would result in more protests,’ warned Manyi.
‘Picket lines, that’s all we’re going to do. We’re going to make South Africa come to a standstill. We’re going to bring our message and do a peaceful protest.’
In response to the party’s threat, as per The Citizen, ANC Secretary-General Fikile Mbalula said protests do not provide solutions.
‘We see people protesting and raising issues and all of that. It’s nice to protest about anything, but they don’t provide solutions,’ Mbalula remarked.
‘Others say tax the wealthy and corporate tax; it has been happening, and that is it. The fundamental question before us is how we address the shortfall.’
According to the publication, Mbalula also clarified that ANC officials had not met with the finance minister ahead of time to discuss the finalisation of the 2025/26 national budget.
The postponed budget speech is expected to be tabled at 2pm today, 12 March, at the Parliament Dome in Cape Town.
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