EFF, ATM slam VAT hike as ‘burden on the poor’
The Economic Freedom Fighters (EFF), African Transformation Movement (ATM), and other opposition parties have strongly condemned the approval of the 2025 national budget, arguing that it will further burden poor South Africans.
EFF leader Julius Malema has accused the ruling party and its allies of manipulating the process to push the budget through.
The National Assembly passed the 2025 national budget on Wednesday, which includes a contentious 0.5% increase in VAT.
The budget was passed with 194 votes from the ANC, IFP, Patriotic Alliance, and several smaller parties, while 182 Member of Parliament (MPs) from the DA, EFF, MK Party and others voted against it.
"Section 8.4 of the Money Bills Act states that a committee must formally adopt the fiscal framework and budget proposal.
“That did not happen. If you review the recordings of that meeting, you will see that the required process was not followed," said Malema.
The EFF leader went further, accusing ActionSA of "political thuggerism," claiming ActionSA’s proposal for alternatives to the VAT hike is a mere illusion.
"There is nothing in the Money Bills Act that allows for conditional recommendations.
“The recommendations put forward by ActionSA are pure political maneuvering—creating the illusion that something will change when, in reality, nothing will. If, after 30 days, the Minister says he couldn't find the money and proceeds with the VAT hike, what recourse do we have? None."
Malema also used the budget debate to take a swipe at the Government of National Unity (GNU), saying the cracks in the coalition are now evident.
"We predicted the GNU wouldn’t last a year, and now, in full view of the public, the cracks are clear. We are satisfied that we have demonstrated through action that there is nothing ‘national’ or ‘united’ about this so-called GNU," concluded Malema.
ATM leader Vuyo Zungula echoed Malema’s concerns, insisting that despite talk of finding alternatives, the VAT increase is inevitable.
"No matter how much people try to spin it, the reality is that VAT will be the order of the day because of the parties that voted for this hike."
Zungula criticised the Treasury for failing to explore alternative revenue streams such as a wealth tax or higher mining royalties.
"South Africa is a mineral-rich country, yet Treasury remains lazy when it comes to finding ways to generate revenue from the wealthy and from our resources. Instead, they choose to further burden poor black South Africans with VAT hikes."
Zungula also accused the government of repeating broken promises from 2018, when VAT was increased with assurances that relief would follow—relief that, he argues, never came.
"We saw this in 2018 when they promised to reduce VAT, and now they’re making similar commitments that we know will not materialize.
Meanwhile, South Africans are already struggling with high electricity costs, fuel prices, and the rising cost of living. Yet, this uncaring government wants to add to their suffering. That is why the ATM proudly voted against this report," he said.
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