Malema Stands Firm Against VAT Increase, Rejects ANC Negotiations

Malema Stands Firm Against VAT Increase, Rejects ANC Negotiations
by Jason Darries, 28 Mar 2025, Politics
17 Comments

Julius Malema, the outspoken leader of the Economic Freedom Fighters (EFF), has firmly dismissed any claims that his party is engaged in talks with the African National Congress (ANC) concerning a suggested 0.75 percentage point rise in value-added tax (VAT). The announced increase is part of the ANC's revised budget proposal, which has already been delayed due to coalition disagreements. Malema has made it clear that such a VAT hike would disproportionately affect the country's low-income households, and instead, he has advocated for rising corporate taxes and introducing a wealth tax to tackle fiscal challenges.

The revised proposal from the ANC surfaces as a compromise after the Democratic Alliance (DA) and other coalition members stood firm in their opposition to a larger 2% VAT hike. According to Malema, there have been no formal negotiations with the ANC about these changes. ‘No one is talking to us, there has never been any kind of engagement between the EFF and the ANC,’ he stated firmly. Malema criticized the coalition's fixation on VAT increases, arguing that real economic recovery should focus on job creation and making use of South Africa's abundant mineral resources.

The Democratic Alliance, a leading force in the government of national unity (GNU), has slammed the 0.75% increase as both ‘tone-deaf’ and ‘reckless,’ alleging that the ANC ignores ongoing issues of wasteful government expenditure. The DA offered alternative measures for cutting costs, such as cutting redundant government agencies and ending expensive military operations in the Democratic Republic of the Congo. Meanwhile, the Patriotic Alliance (PA) shares the criticisms against the VAT increase, suggesting that a more robust South African Revenue Service (SARS) could bring in an additional R450 billion each year without loading more taxes on everyday citizens.

With the ANC eager to pass fiscal measures, the delay in the budget has brought further strain to coalition relations. Reports suggest that the ANC might consider realigning its approach to gain support from opposition parties such as the EFF. Finance Minister Enoch Godongwana has confirmed that a revised budget will be laid out on March 12, 2025. Economic pressure has intensified, partly due to U.S. President Donald Trump's recent suspension of aid over ongoing disputes related to land reform in South Africa.

Heather Stoelting
Heather Stoelting 28 Mar

Wow this is a huge fight and Malema is really standing his ground! Let’s keep pushing for tax policies that protect the working class. Unity and action will win the day!

Travis Cossairt
Travis Cossairt 28 Mar

looks like the VAT hike is just another political tug‑of‑war guess they'll keep spinning the numbers around i think the real issue is job growth

Amanda Friar
Amanda Friar 28 Mar

Sure, because a half‑percentage bump in VAT is exactly what we need to solve deep‑seated poverty, right? Your brilliant solution of higher corporate taxes sounds like a masterstroke in theory but leaves the average consumer sweating. And let’s not forget the wealth tax – that’ll magically refill the treasury while nobody notices. It’s almost as if fiscal policy is being scripted by a comedy writer.

Sivaprasad Rajana
Sivaprasad Rajana 28 Mar

The VAT increase will hit low‑income families hardest because they spend a larger share of their income on consumables. Raising corporate or wealth taxes can generate revenue without burdening everyday shoppers. It also encourages a fairer distribution of tax responsibility.

Andrew Wilchak
Andrew Wilchak 28 Mar

Yo Malema just doesn’t care about the tax hike.

Roland Baber
Roland Baber 28 Mar

Your points hit the nail on the head and I totally get the frustration. While the EFF’s stance may seem radical it’s rooted in protecting the most vulnerable. Keep the conversation focused on real solutions like progressive taxation. Together we can pressure the coalition to rethink the VAT plan.

Phil Wilson
Phil Wilson 28 Mar

The proposal to shift revenue from consumption to capital raises several macro‑economic considerations. Firstly, corporate tax hikes could deter foreign direct investment unless paired with clear policy stability. Secondly, a wealth tax requires robust asset valuation mechanisms to avoid loopholes. Additionally, the administrative capacity of SARS must be expanded to enforce compliance efficiently. In short, diversifying the tax base could reduce regressive impacts but demands careful implementation.

Roy Shackelford
Roy Shackelford 28 Mar

They want you to think the VAT is just a budget line item while the real agenda is to lock us into a global financial trap. Every time a tax rise is announced, international banks smile because they profit from the ensuing debt. The ANC and the DA are puppets in a larger game designed to surrender sovereignty. Wake up before they sell the country’s minerals to the highest bidder.

Karthik Nadig
Karthik Nadig 28 Mar

The VAT hike is just another pawn in the chessboard of global elites! 🤑 They’ll bleed the poor while lining their pockets with our resources! 💣 The coalition’s indecisiveness only fuels the fire of corruption! 🔥

Charlotte Hewitt
Charlotte Hewitt 28 Mar

Totally feels like there’s a hidden hand pulling the strings behind the scenes. It’s not just about numbers; it’s about control.

Jane Vasquez
Jane Vasquez 28 Mar

Oh great, another tax increase to save the nation while the rich hoard their riches – how original! 🙄 The government’s “plan” sounds like a plot from a bad sitcom where everybody pretends to care. If only they’d actually listen to the people, we might see something useful.

Hartwell Moshier
Hartwell Moshier 28 Mar

I see where you’re coming from and appreciate the passion behind your words. The tax debate certainly needs a balanced approach.

Jay Bould
Jay Bould 28 Mar

Tax policies affect everyone, so it’s important we share perspectives from all corners of our diverse nation.

Mike Malone
Mike Malone 28 Mar

The recent discourse surrounding the proposed value‑added tax increase merits a thorough and methodical examination.
Primarily, it is essential to acknowledge that consumption taxes are inherently regressive, disproportionately burdening households with limited discretionary income.
Empirical analyses conducted in comparable economies have demonstrated that a modest augmentation of VAT can erode purchasing power among the most vulnerable segments of society.
Consequently, policymakers are compelled to explore alternative fiscal instruments that align with the principles of equity and efficiency.
In this context, the suggestion to elevate corporate taxation warrants careful scrutiny, particularly with respect to its potential impact on investment inflows and job creation.
A well‑designed corporate tax framework, complemented by transparent enforcement, may indeed generate requisite revenue without sacrificing economic dynamism.
Similarly, the introduction of a wealth tax presents both opportunities and challenges, notably the necessity for accurate asset valuation and robust compliance mechanisms.
The administrative capacity of the South African Revenue Service must be significantly bolstered to administer such measures effectively.
Moreover, any fiscal reform should be synchronized with broader structural reforms, including the rationalisation of redundant governmental agencies, as highlighted by opposition parties.
The reduction of superfluous bureaucratic expenditures can liberate resources that might otherwise be allocated to social programs.
It is also prudent to consider the macro‑economic ramifications of heightened tax burdens on consumption, which may inadvertently suppress aggregate demand.
Therefore, a balanced approach that judiciously combines progressive taxation with prudent expenditure rationalisation stands as the most viable pathway.
Stakeholder engagement, inclusive of civil society and the business community, remains indispensable to securing broad‑based consensus.
Transparent communication regarding the intended use of the additional revenue can foster public trust and mitigate dissent.
In summation, while the imperative to raise revenue is undeniable, the methodology employed must be both equitable and economically sound to ensure sustainable development.

Pierce Smith
Pierce Smith 28 Mar

The debate on VAT versus corporate and wealth taxes underscores the need for a comprehensive fiscal strategy. While raising consumption taxes may be expedient, it risks widening inequality. Conversely, targeted corporate and wealth levies can provide revenue with a more progressive impact. Ultimately, constructive dialogue among parties is essential to forge a solution that serves the broader populace.

Abhishek Singh
Abhishek Singh 28 Mar

Sure, because the rich will just love paying more, right?

hg gay
hg gay 28 Mar

Hey folks, I totally get the frustration around tax changes – it feels like the system is constantly shifting under our feet. 😊 It’s important we keep the conversation grounded in empathy for those who feel the pinch most. By sharing knowledge and listening to each other, we can push for policies that actually help everyday people. Let’s remember that the economy is a living organism, and every tax tweak affects its health. Keep the dialogue open, stay supportive, and don’t forget to bring a smile to the discussion! 🌟

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