THE Democratic Alliance (DA) has taken a firm stance.
The second largest party in the Government of National Unity (GNU) has announced that it will not support the 2025 Budget.
Party leader John Steenhuisen said they have communicated to the African National Congress (ANC) in the GNU that they will not support any tax increases unless these are temporary.
Additionally, Steenhuisen said the ANC must agree to implement significant reforms aimed at stimulating economic growth, creating jobs, reducing waste, and lowering taxes within three years.
"The ANC refused to agree to these measures and instead insisted on two likely permanent VAT increases, which cumulatively will increase VAT by 1% over the next two years.
"As a consequence, the people of South Africa will be poorer, and the future of the government is at risk," said Steenhuisen.
He further said the underlying problem is that the ANC has still not accepted the outcome of the general election and cannot bring itself to share power.
"It is deeply unfortunate that the ANC is prepared to sacrifice the South African people and risk the economic future of the country rather than accept it no longer has majority support.
"The ANC VAT Budget doesn't have a majority, and the DA won't give it one. It's now up to the ANC to fix the mess it has created," he said.
ALSO READ | Residents 'celebrate' as mashonisa is killed!Opens in new window
Meanwhile, Edward Kieswetter, the commissioner for the South African Revenue Service (Sars), accepted the budget speech.
The minister announced an increase in the revenue estimate to R1,846 trillion, from R1,841 trillion announced in last year's Medium-Term Budget Policy Statement (MTBPS).
The revised revenue estimate marks an improvement over the October 2024 estimate and reduces the shortfall against the February 2024 estimate, which was set at R1,863 trillion, from R22,3 billion to R16,7 billion.
Kieswetter said the country continues to face tough economic conditions, which have shifted economic assumptions negatively.
"Sars revenue collection accounts for 90% of government expenditure. This requires Sars to do all that is possible within its mandate to ensure that all revenue due to the fiscus is collected to support the government's development goals despite the sluggish economy.
"Efficient and effective collection of all revenue will help to maintain overall fiscal stability. The pursuit of domestic resource mobilisation is key to our country's development and protecting its future," he said.
Kieswetter said Sars will continue to sharpen its approach to tax collection, which involves enhancing compliance measures to meet the challenge posed by the revised estimate of R1,846 trillion.
For more news and entertainment in the palm of your hand, follow our WhatsApp Channel via this link
