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EFF pressures ANC: Scrap VAT hike, drop DA and FF+ from GNU

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By Thapelo Molefe

The EFF met with the ANC on Friday in a desperate bid to resolve the deadlock over the budget and the reconfiguration of the Government of National Unity (GNU).

Despite the meeting, which was led by ANC Secretary-General Fikile Mbalula in Sandton, Johannesburg, the EFF remained resolute in its refusal to support the 2025 budget.

On Saturday, the ANC is expected to meet with the DA in a continued effort to find common ground following disagreements over the proposed VAT increase, announced by Finance Minister Enoch Godongwana in last month’s parliamentary budget speech.

Meanwhile, the DA and EFF are challenging the adoption of the fiscal framework and the powers of the finance minister under the VAT Act in court.

In a statement following Friday’s meeting, the EFF maintained that the current budget unfairly burdens the country’s poorest citizens.

“The EFF reaffirmed its principled rejection of a 0.5 percentage point increase in VAT for the year 2025 as a mechanism to generate revenue,” the party said in a statement released after the meeting. 

The EFF also emphasised that their vote against the fiscal framework in Parliament was in response to what they called “a flawed and irregular process that is now subject to judicial review.”

The party rejected any suggestion that the meeting signals a softening of their stance. 

“Our engagements with the ANC must therefore not be mistaken as participation in a fruitless exercise to seek alternatives to the VAT increases… This is simply not practical, realistic or legislatively permissible.”

While the ANC has initiated talks with various parties in a bid to stabilise its tenuous GNU arrangements, the EFF made its position unmistakably clear that it will not be part of any unity government that includes the DA or the Freedom Front Plus (FF+). 

“The EFF will only participate in the GNU on the condition that it does not include the DA and FF+, who are at the centre of the chaos and confusion occurring in government today,” the party said.

While the EFF acknowledged the need to resolve the budget impasse and protect South Africa’s most vulnerable citizens through “sound economic planning,” the party was unequivocal about the responsibilities of those who supported the VAT hike.

The EFF further lambasted what it described as opportunistic behavior from parties that approved the VAT hike but now offer “false hope” of reversing it. 

“All political parties which voted in support… must take responsibility for their actions and desist from giving the people of South Africa false hope that non-binding recommendations can reverse what they supported,” said the EFF.

Insisting that it has offered viable alternatives, the EFF said it had submitted amendments during the Standing Committee on Finance meeting on 2 April and shared “a comprehensive document containing our sensible alternative revenue generation mechanisms to the public.”

While the meeting with the ANC marks the first in a series of discussions about the upcoming budget and GNU configuration, the EFF warned it would not compromise on its principles. 

“The EFF will not support any financial piece of legislation that will be presided over by racists who reject such legislation, yet want to continue operating in Cabinet using budgets they did not support.”

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