JOHANNESBURG - Political parties both within and outside the Government of National Unity (GNU) have welcomed the scrapping of the proposed 0.5% VAT increase.
But some parties are slamming the Democratic Alliance (DA) for claiming credit for the reversal.
Among those criticising the DA is Patriotic Alliance Deputy President, Kenny Kunene, who slammed the party’s conduct as ‘hypocritical.’
“A party of extortionists has failed to serve South Africans on an important matter of national interest. So, South Africans, don’t be misled,” said Kunene.
ANC Secretary-General Fikile Mbalula also weighed in, saying constructive dialogue had led to the withdrawal of the VAT increase while allowing for alternative fiscal solutions.
“This is not a victory for any single party, nor is it about who shouts the loudest. This is a people’s victory, a quiet but profound triumph of our democratic institutions. Parliament acted as the voice and shield of the nation,” Mbalula said.
READ | Discussion | Finance Minister U-turns on VAT increase
The DA had previously taken credit for the postponement of the Budget Speech in February, blaming the delay on Finance Minister Enoch Godongwana’s failure to engage with its alternative proposals.
Despite objections from various parties, the budget, including the VAT hike, was passed.
This later saw both the DA and the Economic Freedom Fighters (EFF) banding together to challenge the hike before the Western Cape High Court, where they argued that both the National Assembly and the National Council of Provinces (NCOP) had adopted the fiscal framework improperly.
EFF lawyer, Tembeka Ngcukaitobi, went further, accusing the finance minister of misleading Parliament to push the budget through.
The matter continued in court until late Wednesday evening, after that the DA confirmed through an 11pm statement, that lawyers representing the Finance Minister had approached them to propose an out-of-court settlement.
The DA said it was waiting for a formal written settlement offer before deciding on a response.
Shortly after midnight, the National Treasury released a statement confirming the cancellation of the VAT increase.
On Thursday morning, the DA held a media briefing, insisting the VAT reversal was a direct result of their court application and not due to negotiations between smaller parties and the ANC.
As political parties bicker over who can claim credit for the VAT hike reversal, RISE Mzanzi leader, Songezo Zibi, said the country now has to deal with a multibillion-rand fiscal gap.