uMkhonto weSizwe (MK) Party members and supporters marched to the South African Reserve Bank (SARB) on Monday to protest the proposed 2% increase in VAT, arguing that it would place an unfair burden on low-income households and small businesses.
The party criticized the government’s plan to zero-rate certain foods, calling it insufficient in addressing the financial strain on citizens.
“We are not opposed to zero-rating some foods, but it is not enough. There shouldn’t be a trade-off between this and increasing VAT. A VAT hike increases inflationary pressure, especially on the poor, who already struggle with transport and electricity costs,” said MK Party spokesperson Mzwanele Manyi.
Manyi rejected any VAT increase, instead proposing alternative ways to boost revenue, such as tackling illicit financial flows and strengthening tax collection efforts by SARS.
“SARS is ready to collect R800 billion. The government just needs to support SARS in its efforts,” he added.
However, ANC secretary-general Fikile Mbalula dismissed the protests, arguing that they lacked viable solutions.
“It’s easy to protest, but where are the solutions?” Mbalula said. “Some suggest taxing the wealthy and corporations, but that is already happening. The fundamental question is how we address the shortfall.”
Mbalula reaffirmed the ANC’s support for Finance Minister Enoch Godongwana, stating that the government remained united in delivering the national budget on Wednesday.
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South Africa Braces for Social Unrest as MK Party Threatens Protests Over VAT Hike