The National Treasury's proposed increase in Value Added Tax (VAT) has ignited fierce opposition from the MK Party, which has characterised the government's move as a "cruel and calculated attack" on the working class and the poor.
Finance Minister Enoch Godongwana's proposal for a 0.5% increase in VAT has been widely rejected by various parties in Parliament, including strong condemnation from MK Party Member of the Legislature Ishana Barciela.
In a press statement, Barciela denounced the Government of National Unity (GNU) for what she described as a political choice rather than an economic necessity.
"The MK Party vehemently rejects the proposed VAT increase," Barciela declared, emphasising that South Africa's economic woes stem not from a lack of resources but from "the ANC’s mismanagement, corruption, and neoliberal economic policies."
She pointed to the staggering R3.5 trillion added to the national debt during President Cyril Ramaphosa's tenure, questioning the government's claims of financial scarcity for essential social services.
"This is a direct assault on the people, forcing them deeper into poverty while the political elite and their capitalist backers continue to feast," she stated, arguing that the VAT increase could raise prices on food and necessities by 5% to 10%, further exacerbating the struggles of working families.
Barciela warned of dire budget implications, stating that failure to pass the budget could lead to severe cuts in essential services, further economic instability, and exacerbate poverty.
"If this budget isn't voted in, we could witness a collapse of critical services that millions depend on," she cautioned.
"The government must understand that their choices have real consequences for the lives of ordinary South Africans."
In addition to her critique of the VAT increase, Barciela highlighted concerns over potential electoral manipulation linked to the government's push for digital IDs which means people can vote without physical IDs.
"They fear the people's wrath in 2026 and 2029, and they are laying the groundwork for election fraud," she said, urging citizens to protect their democratic rights.
"Protect your right to vote — hold on to your green ID book! Digital ID will lead to digital voting, which makes vote-rigging very easy."
The MK Party positions itself as a beacon of hope for economic justice, vowing to resist what they call the "economic dictatorship of the billionaires".
"Our manifesto is not a set of promises, but a blueprint for economic liberation. The time to fight back is now!" Barciela concluded.
Get your news on the go, click here to join the IOL News WhatsApp channel.
Speaking on the sidelines of the party's first high national command meeting in Durban since the last general elections, Shivambu clarified, "We wish to correct the assertion that our party met with the ANC. It has never happened. The meeting people refer to was between Parliament whips, which cannot be regarded as a party meeting."
He further emphasised that even if the ANC were to approach the MK Party today, they would not agree to any VAT increase, not even one as small as 0.1%.
"We have never held a bilateral meeting with the ANC, be it on joining the Government of National Unity (GNU) or discussing the VAT increase,” Shivambu stated.
According to the Constitution, Parliament needs a simple majority to pass the budget, which means 201 parliamentarians must support it.
With the ANC having 159 seats, provided all of them are in Parliament next week and vote for the budget, the party needs 42 votes from other parties to pass the budget. The DA has indicated that it will not support a VAT increase, and the ANC may need the support of the EFF if the VAT increase is to be approved.
IOL Politics