The ANC’s tripartite alliance partner, the SACP, contends its proposals for the scrapping of the VAT hike fell flat and believes the “arrogance of the ANC leadership” would result in the poor suffering.
SACP general secretary Solly Mapaila, speaking at a media briefing on Sunday, delivered yet another criticism of the ANC as finance minister Enoch Godongwana forges ahead with plans to implement a VAT hike.
“In our last bilateral meeting [with the ANC] we said the matter must go for further engagements but the budget that was presented still had VAT increase.
“The DA opportunistically entered this [fight against VAT increase] terrain because of the arrogance of the leadership of the ANC on this matter, they moved ahead without properly engaging,” Mapaila said.
Godongwana tabled his budget speech on March 12 and proposed for a VAT increase by half a percentage point in 2025/26, and by another 0.5% in the following year.
There has been much drama within the government of national unity (GNU) on the VAT hike and Godongwana’s hike has been also rejected by its alliance partners, SACP and Cosatu.
The SACP wrapped up its central committee meeting over the weekend and one of its outcomes was for continuation of rejection against the VAT increase.
Mapaila said the hike would be detrimental to the poor and had flagged this when it met with the ANC in a bilateral meeting in March.
“The VAT [increase] punches the poor across the board. Under the current difficult living conditions, the cost of living is too high, this is too much for them,” he said.
Mapaila said he found relief in that “the parties that supported the budget have indicated that there would be a review on the VAT.”
Relations between the ANC and its alliance partners have been unsettled after the May 29 elections after which the ANC partnered with the DA.
Mapaila accused the DA of being “opportunistic” in initiating a legal battle against the VAT hike.
The DA was not fighting for the poor but merely disgruntled after the ANC did not give into its demands, he said.
The DA lodged a court application in the high court in Cape Town contesting the VAT hike after weeks of negotiations with the ANC hit a deadlock.
The SACP also implored President Cyril Ramaphosa’s office to defend the National Health Insurance (NHI) Act amid legal challenges from the private sector which wants to block its implementation.
Organisations representing doctors and medical aids have taken Ramaphosa to court over the NHI.
The SA Medical Association (Sama) announced last week it would lodge a constitutional challenge against multiple provisions of the act.
“The SACP reiterates its stance, in defence of the NHI, for its urgent and full implementation towards the provision of quality healthcare for all. The government, especially the presidency, must not abstain from the court process to defend the NHI,” said Sacp spokesperson Alex Mashilo.
Health minister Aaron Motsoaledi, in the last year, has been lobbying for SACP and Cosatu to support the NHI as the ANC faces pushback from the DA.
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