EFF
By Thabo Mosia
On Tuesday, 13 May 2025, the Economic Freedom Fighters (EFF) announced a “VAT Victory March” to the National Treasury, celebrating the successful defeat of the proposed Value-Added Tax (VAT) increase. The march is scheduled for Monday, 19 May 2025, at 10:00 AM, starting from the Union Buildings in Pretoria.
This announcement follows the Western Cape High Court’s decision to suspend the VAT increases and set aside the 2025 Fiscal Framework and Revenue Proposals, citing their unlawful adoption by the Standing Committee on Finance and the National Assembly.
⸻
Background: The Proposed VAT Increase
In March 2025, Finance Minister Enoch Godongwana presented the national budget, which included a phased VAT increase from 15% to 16% over two years—0.5 percentage points in 2025 and another 0.5 in 2026. The government projected that this increase would generate approximately R13.5 billion in additional revenue during 2025, aiming to address a projected R75 billion shortfall over the medium term.  
However, the proposal faced significant opposition from various political stakeholders, including the Democratic Alliance (DA), the country’s second-largest political party and a key coalition partner in the unity government. The DA argued that the VAT hike would disproportionately affect lower-income households and challenged the legality of the budget process in court.  
⸻
Legal Challenges and Political Pushback
The DA’s legal challenge questioned the procedural legality of the budget’s adoption, particularly the VAT increase. The party contended that the parliamentary adoption of the fiscal framework was procedurally flawed and sought an interdict to halt its implementation. 
Simultaneously, the EFF also opposed the VAT increase, emphasizing its potential negative impact on low-income households. The party’s efforts, both in Parliament and in court, contributed to the mounting pressure against the proposed tax hike. 
The culmination of these legal and political challenges led the Western Cape High Court to suspend the VAT increases and set aside the 2025 Fiscal Framework and Revenue Proposals, citing their unlawful adoption by the Standing Committee on Finance and the National Assembly.
⸻
Government’s Reversal and Fiscal Implications
In response to the court’s decision and the political opposition, the National Treasury announced on 24 April 2025 that it would scrap the planned VAT increase scheduled to begin on 1 May 2025.
The Finance Ministry acknowledged that the decision followed extensive consultations with political parties and careful consideration of parliamentary recommendations. The cancellation is expected to create a revenue shortfall of approximately R75 billion over the medium term, prompting the government to adjust expenditures to preserve fiscal stability.
Finance Minister Enoch Godongwana warned that abandoning the VAT increase would severely damage the country’s finances. He argued that the loss of this revenue would disrupt budgeted expenditures and force the government into undesirable borrowing or spending cuts. 
⸻
EFF’s ‘VAT Victory March’
Celebrating the defeat of the VAT increase, the EFF announced plans for a “VAT Victory March” to the National Treasury. The march is scheduled for Monday, 19 May 2025, at 10:00 AM, starting from the Union Buildings in Pretoria.
Sinawo Thambo, the EFF’s National Spokesperson, stated, “The Economic Freedom Fighters (EFF) will hold a VAT Victory March to the National Treasury, following the successful defeat of the VAT Increase.” He emphasized that the march is a celebration of the party’s efforts in Parliament and in court to oppose the tax hike.
⸻
Broader Political Implications
The reversal of the VAT increase has significant implications for South Africa’s political landscape. It highlights the complexities of coalition governance and the challenges of implementing fiscal policies in a politically fragmented environment. 
The African National Congress (ANC), which has ruled South Africa since the end of apartheid, was forced into a coalition government after losing its parliamentary majority in the 2024 elections. The VAT hike proposal and its subsequent reversal have strained relations within the coalition, particularly between the ANC and the DA.  
The DA hailed the reversal as a “victory for all South African taxpayers” and criticized Finance Minister Godongwana for undermining coalition agreements. The party’s chairperson, Helen Zille, suggested that the fiasco “should make a minister resign.” 
The EFF, although not part of the coalition government, has leveraged the situation to bolster its political standing. By positioning itself as a defender of the poor and a check on government overreach, the party aims to expand its support base ahead of future elections.
🔴 Central News Special Edition | Issue 104 🔴 Download the Latest Print and E-Edition | Headline: DA’s Helen Zille Accuses ANC of Using Employment Equity Law to “Shrink Jobs and Punish Business”
Download Here:
Direct PDF Link:
https://centralnews.co.za/wp-content/uploads/2025/05/Central-News-Issue-104.pdf
Read all our publications on magzter:
https://www.magzter.com/ZA/Central-News-Pty-Ltd/Central-News/Newspaper/All-Issues
Central News also offers Sponsored Editorial Content, Podcasts , Radio / Social Media Simulcast, Video Production , Live Streaming Services, Press Conferences, and Paid Interviews (Video/Audio) etc.
We guarantee exceptional exposure, reach, and engagement, with an excellent return on investment.
Advertisement:
To place your advert on our platforms (Print Newspaper or Digital Platforms) : Please email : sales@centralnews.co.za
For Business Related:
business@centralnews.co.za
Newsroom:
Send your Stories / Media Statements To: newsroom@centralnews.co.za
General Info:
info@centralnews.co.za
Office Administrator:
admin@centralnews.co.za
Whatsapp / Call: 081 495 5487
Website: https://www.centralnews.co.za
Social Media Platforms (@centralnewsza) : Linkedin, Facebook, Tiktok, Twitter, Instagram, Youtube