MK Party files motion of no confidence against Godongwana

In a statement, the MK Party accused Godongwana of opting for a regressive VAT hike rather than pursuing wealth taxes or taxing luxury goods, measures they argue would have placed a fairer burden on the country’s richest citizens.

Treasury had initially planned to increase Value Added Tax (VAT) by 1%, moving it from 15% to 16%, in an effort to boost revenue.

Finance Minister Enoch Godongwana confirmed in a statement on Thursday that the VAT rate will remain at 15%, shelving the proposed 0.5 percentage point hike that was announced during his Budget Speech last month.

“The decision to forgo the increase follows extensive consultations with political parties, and careful consideration of the recommendations of the parliamentary committees,” the statement read.

The decision means an estimated revenue shortfall of R75 billion.

 In a statement, the MK Party said the decision has fueled market uncertainty, deepened hardship among the poor, and undermined efforts to grow the economy under the National Development Plan.

"The Finance Ministry cannot be entrusted to individuals who disregard the socioeconomic realities faced by our people,” read the statement. 

It also criticized Godongwana for a lack of transparency and what it described as a "disconnection from the lived experiences of the majority."

The Party has urged members of parliament to support the Motion of No Confidence when it is debated, insisting that South Africa deserves a finance minister who places people before capital interests. 

The party further emphasized its commitment to protecting the poor, claiming credit for previously blocking VAT increases that disproportionately impacted vulnerable citizens.

ALSO READ