Eff Suggests Apartheid Tax Instead Of Vat Hike

Treasurer-general of the Economic Freedom Fighters EFF Omphile Maotwe has called upon the South African government to consider an apartheid tax in lieu of the recently approved 0.5 percentage point increase in Value Added Tax VAT, reports Cape town Etc .

This proposition surfaced during a public hearing at the Cape Town High Court on Tuesday, where both the EFF and the Democratic Alliance DA formally opposed the VAT hike adopted by Parliament earlier this month.

Finance Minister Enoch Godongwana has staunchly defended the VAT increase as a necessary measure to address a substantial budget deficit, warning that delaying the action could have detrimental effects on the nation's finances.

However, Maotwe argues that the rationale behind the proposed VAT hike is fundamentally flawed.

Speaking with Newzroom Afrika after the court proceedings, Maotwe highlighted a glaring discrepancy in the government's financial expectations. The minister says he's short of R28 billion in his budget, and that's why he's increasing the VAT. But the reality is that the VAT increase will only yield R13.5 billion, leaving him still significantly short, he explained.