to VAT Increase Amid Political Divide
Cape Town:- As South Africa continues debating the 2025 national budget, the GOOD Party has positioned itself as a constructive voice, offering solutions to reverse the controversial VAT increase and income tax bracket creep.
While still ensuring the government raises enough revenue.
GOOD Responds to CCN Story
Following a recent CCN report on the DA taking the Finance Minister to court, the GOOD Party directly responded, emphasizing their commitment to finding alternative solutions rather than outright opposition. They reiterated their stance on reversing the VAT increase while ensuring fiscal responsibility.
Political Divide Over Budget Talks
Tomorrow, a meeting will be held between parties that supported the fiscal framework, aiming to discuss alternatives to the VAT hike. Parties that voted against the budget will be excluded, highlighting divisions within the Government of National Unity (GNU). This exclusion includes the DA, which has taken the Finance Minister to court over the budget.
The GOOD Party stated that while National Treasury alone cannot be held responsible for economic growth, every Minister in the Executive has a role in ensuring job creation and economic stability. They emphasized that political turbulence should not interfere with practical budget solutions.
GOOD Partyโs Alternative Revenue Plan
Instead of increasing VAT, which disproportionately affects lower- and middle-income South Africans, the GOOD Party suggests:
1. Reducing tax breaks for the wealthy, particularly adjusting the R350,000 tax-free retirement saving break and medical tax credits, which could raise R50 billion.
2. Scrapping the Employment Tax Incentive (ETI), arguing that it has failed to create jobs as intended, potentially freeing up R7 billion.
3. Using reserves from the Gold & Foreign Exchange account if needed to cover shortfalls.
Medium-Term Reforms Proposed
GOOD also supports longer-term strategies, including:
A comprehensive budget review to eliminate wasteful spending.
A wealth tax targeting the ultra-rich.
Selling or shutting down inefficient state-owned enterprises (SOEs) while retaining strategic industries.
What This Means for South Africa
With some GNU members excluded from tomorrowโs discussions and opposition parties like the DA and EFF completely left out, South Africans are left wondering whether these talks will lead to meaningful changes or further political friction.
While the GOOD Party offers practical alternatives, the real question remains: Will these proposals be taken seriously by the broader government, or will politics overshadow real solutions?
Stay tuned for updates from CCN as the discussions unfold.
