Budget 2025 | EFF extends olive branch to DA over VAT concerns

EFF spokesperson Sinawo Tambo said they were open to discussing the budget matters with the DA.

EFF spokesperson Sinawo Tambo said they were open to discussing the budget matters with the DA.

Published 13h ago

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The Economic Freedom Fighters (EFF) have invited the Democratic Alliance (DA) to the opposition benches to discuss what the budget should look like - provided they are serious about rejecting the proposed Value Added Tax (VAT) increase.

Speaking to the SABC on Wednesday in Cape Town, EFF spokesperson Sinawo Tambo said they were open to discussing the budget matters with the DA.

"If the DA is true to its word that it is rejecting an increase in VAT, it must come to the table and sit with other opposition parties and draft the necessary amendments, especially if it relates to taxation, to ensure that it does not affect the poor negatively," he said.

However, responding to the EFF's request, DA spokesperson Karabo Khaukhau told IOL that this was not on the cards.

"This hasn't been discussed yet," she said.

The EFF and DA share the same sentiment of "No VAT hike" as this would be bad for cash-strapped citizens.

This comes as Finance Minister Enoch Godongwana prepares to present his 2025 Budget Speech in Cape Town, on Wednesday.

The budget was postponed in February after the Government of National Unity (GNU) partners, particularly the ANC and DA failed to agree on the VAT hike.

Initially, the DA rejected the proposed 2% which led to the postponement. President Cyril Ramaphosa held several cabinet meetings in a bid to reach a consensus but failed.

The blue party has accused the ANC of wanting to forge ahead with the hike without considering people's financial conditions or the proposals the DA had tabled to end the impasse.

"We will not vote for the budget. We can't support a budget that taxes South Africans heavier than they are [taxed]," Khakhau said.

According to Tambo, the EFF's ideal budget speech should include job creation and economic growth.

"For us, it has to be the emphasis on how there has to be creation of jobs, and the proposed budget that was ultimately not delivered in Parliament a couple of weeks ago, said nothing specific towards a growth plan to grow the economy.

"There must be emphasis on how you are going to curb a decline of projected economic growth," he said.

He added that the decline indicated that there was no economic planning in Godongwana's office or the National Treasury.

"They are focussed on taxation; they are focused on public-private partnerships as a mechanism to generate economic growth. This has not proven to work in South Africa and only resulted in the growth of the private sector," he said.

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