Political parties weigh in on scrapped VAT hike
Political reaction has been streaming in on the decision to scrap the controversial VAT hike.
The ANC says National Treasury's unexpected U-turn highlights the need for greater transparency, and more voices on how the country spends its money.
The party has welcomed the decision to keep VAT at 15%.
The ANC says two key lessons emerged from this decision.
Firstly, it underscores the need for a more inclusive approach to national spending.
The party says secondly, it shows that putting aside political differences can lead to effective solutions.
The ANC also says the proposed VAT increase overshadowed positive elements in the budget, including increased funding for social programs and infrastructure investment.
READ: Godongwana reverses decision on VAT increase
The DA's Helen Zille addressed the media at a briefing on Thursday.
She says they believe Finance Minister Enoch Godongwana was warned by his legal team that the VAT hike court case would be set aside.
“It seemed better for the minister to concede before he was perceived to have been forced to by the outcome of the DA’s court challenge.”
Meanwhile, the EFF, which also opposed the increase in court, is now calling for the resignations of Godongwana and Treasury’s Director-General.
The party maintains that the 2025 Fiscal Framework was adopted illegally.
Godongwana is expected to introduce a revised version of the Appropriation Bill and Division of Revenue Bill within the next few weeks.
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