ANC says voters won't punish party for VAT hike if it stimulates economy, creates jobs
At a media briefing on Thursday, the ANC has come out in support of the finance minister and the hike, saying it was a difficult and necessary decision.
ANC Secretary-General Fikile Mbalula during a media briefing at Luthuli House in Johannesburg on 13 March 2025. Picture: Spamandla Dlamini/EWN
JOHANNESBURG - The African National Congress (ANC) said it would not be punished by its voters for raising value-added tax (VAT) if the move ended up stimulating the economy and creating jobs.
On Wednesday, Finance Minister Enoch Godongwana tabled before Parliament the national budget, which proposes a one percent hike on VAT over the next two financial years.
At a media briefing on Thursday, the ANC has come out in support of the finance minister and the hike, saying it was a difficult and necessary decision.
ANC Secretary-General Fikile Mbalula said the Government of National Unity (GNU) had a duty to make the most of the revenue that would be generated by the tax hike.
"Our prospects will increase if the economy performs and people work and you must also look at things broadly speaking, the cost of electricity in SA, if you were to talk about corporate tax, those big companies that employ millions of our people, how are they are going to be affected which already by now, as it has been explained by Treasury, the tax imposition on them is already high."