The uMkhonto weSizwe (MK Party) has issued a stern warning to Finance Minister Enoch Godongwana, urging him to reconsider the proposed Value-Added Tax (VAT) increase.
The party’s Parliamentary Chief Whip, Mzwanele Manyi, emphasized that increasing VAT would disproportionately affect the poor and exacerbate inflation.
Instead, Manyi suggested alternative measures to generate revenue, such as:
- Increasing corporate tax: By one percentage point, which would not severely impact businesses but would help address the country’s financial woes.
- Implementing a wealth tax: Targeting South Africa’s richest citizens, who would hardly feel the impact.
- Cracking down on illicit financial outflows: Multinationals often use price transfer schemes to evade tax, and addressing this issue could yield significant revenue.
- Supporting the South African Revenue Services (SARS): SARS is capable of generating R400 billion, but requires assistance to do so effectively.
The MK Party has already staged a march in Pretoria, protesting the proposed VAT increase.
Manyi cautioned that if the government proceeds with the VAT hike, the party will organize nationwide protests, including picket lines, to bring the country to a standstill.
