Ramaphosa confident budget vote will pass as opposition parties reject VAT hike

As the ANC led government's budget vote hangs in the balance amid reports that various political parties have rejected the proposed budget which has pushed the country's Value Added Tax (VAT) to 16% from 15%, President Cyril Ramaphosa says he is confident that with or without the DA, the Minister of Finance, Enoch Godongwana will table his revised budget on Wednesday.

This week, Godongwana is expected to table his most controversial revised Budget which has been hampered by the Government of National Unity (GNU) discord. 

In a bid to get support for the budget vote, reports indicate that the ANC has been knocking on the doors of various political parties including the EFF, BuildOneSA, ActionSA  and the MK Party.

Speaking on the sidelines of the third day ANC NEC meeting in Boksburg on Sunday, Ramaphosa was adamant that the much-anticipated budget would be given the green light by most of the opposition political parties in the National Assembly.

"As an independent party, the DA has a right to discuss whatever it wants to discuss. They have a right to discuss these things, but they must put the interests of the country first. However, with or without the DA, the budget will be passed," Ramaphosa stated.

Ramaphosa's optimism was echoed by ANC spokesperson Mahlengi Bhengu-Motsiri  who stated:"

I think that matter was ventilated thoroughly yesterday, but we are absolutely confident that the budget will be passed on Wednesday.”

On Friday, Godongwana, speaking during the joint meeting of finance committees in Parliament, Godongwana slammed the DA and accused the party of negotiating in bad faith saying the DA had previously endorsed tax increases, including a proposed VAT hike on condition that government renegotiate some of its recently passed legislation including the National Health Insurance (NHI), the Land Expropriation Act among others.

“The DA sent a letter to the President accepting the 0.5% for things that are outside the Budget, such as the Expropriation Act....We met on several occasions, and we generated five options. Option one was a DA proposal – no tax relief and an increase on fuel levy, medical credits, alcohol, and related matters. To suggest that they don’t want any other increase is inaccurate," the minister said.

IOL has reported that BOSA leader, Mmusi Maimane is one of the other leaders who have been approached by the ANC in order to get the much-anticipated budget vote approved.

“As Parliament prepares to consider the 2025/26 national budget next week, Build One South Africa (BOSA) confirms that we have been approached by the ANC requesting a meeting on the matter,” BOSA said.

A senior EFF leader who did not want to be named confirmed that the red berets were also approached by the ANC to secure enough numbers to get the budget vote over the hill. However, he stated that the party's position has always been that the EFF is opposed to the VAT hike which prevents the EFF from voting with the ANC on the upcoming budget.

"Our position has long been clear that we are opposed to the VAT hike and therefore do not support the current budget vote to be presented by the minister of finance,"' the source said.

Godongwana's proposal for a 0.5% has also received a rejection from MK Party Member of the Legislature Ishana Barciela.

Attempts to get comment from the DA were unsuccessful at the time of going to print.

siyabonga.sithole@inl.co.za