EFF welcomes VAT court ruling, calls for Godongwana’s ouster

This demand follows a decision by the Western Cape High Court to block the proposed VAT increase and order Godongwana to cover half of the legal expenses related to the case.

During a media briefing, held at the Winnie Madikizeka House in Johannesburg on Monday, EFF leader Julius Malema said the two officials had forfeited the public’s trust.

“They have the confidence of the people of South Africa, and the business community should not trust them. It is the business community that has spent billions to change the VAT system for nothing and should pursue any means necessary to hold the government accountable,” he stated.

The party lauded the court’s ruling, describing it as a victory for constitutional values and a win for working-class South Africans.

Opposing the budget from the outset, the EFF challenged both the VAT hike and parliamentary resolutions endorsing the finance committee’s reports. 

The court also found Parliament’s endorsement of the fiscal framework to be invalid.

Malema said the judgment reaffirmed Parliament’s oversight role and shielded ordinary citizens from a burdensome tax during a difficult economic period.

“At a time when South Africans are already suffering under the unbearable high cost of living, skyrocketing food prices, unaffordable electricity tariffs and record petrol prices, the suspension of VAT increase is a necessary intervention against further economic suffocation,” he noted.

He went on to condemn the overall 2025 budget, saying it was fundamentally flawed due to what he called the Treasury’s unwavering allegiance to white capital, which he argued was out of step with South Africa’s economic needs.

Malema gave the government until July to introduce a legally sound third budget for the 2025/26 fiscal year.

“The current government must either deliver a lawfully budget within this timeframe or accept its failure to do so will trigger a constitutional crisis leading to its collapse and fresh elections,” he warned.

The EFF also outlined conditions for potentially supporting the ANC, which include scrapping the VAT hike to protect low-income groups, raising corporate tax from 27% to 28.5% in 2025/26 and to 30.5% the following year, and imposing a once-off Apartheid Wealth Tax on pre-1994 trusts to raise R30–R50 billion.

They emphasised that these measures reflect a progressive fiscal vision aimed at redistributing wealth and rejecting austerity, which they argue disproportionately harms the disadvantaged.

“These are not necessarily about everything else except that this is where we can generate revenue instead of going to target the poor. Let's go to the people who matters the most, who make money and collect more taxes from them,” the party said.

Parliament has since responded to the ruling, with Speaker Thoko Didiza confirming she has asked Minister Godongwana to clarify when a revised budget will be submitted.

“As soon as this information is available, I will ensure that the Chief Whips' Forum and the Programme Committee will be notified and convened to consider a revised parliamentary programme,” she said.

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