IFP says VAT increase should be a temporary measure

DURBAN - The Inkatha Freedom Party (IFP) says while it supports the value-added tax (VAT) increase it should be a temporary measure.

The party held a media briefing in Durban on Monday, following a two-day national executive committee meeting.

The IFP is one of the Government of National Unity (GNU) parties that voted in favour of the hike implementation in parliament last week.

However, the party says the increase should not be a permanent solution.

The IFP says despite being part of the Government of National Unity - it still holds its own views.

While the party rejected the initial 2% VAT increase proposal it has, however, supported the revised VAT increase.

Party president, Velenkosini Hlabisa says it will have a good effect on the economy.

"We recognize that the decision to increase vat is not taken lightly, as it impacts all South Africans. However, given the dire state of public finances, revenue collection shortfalls, and the need to maintain critical social programs, we believe that this measure is a responsible step towards economic stability.”

He adds, however, that at some point, it should be scrapped.

“The VAT increase must be temporary and must be done away with as soon as more viable economic income streams are secured.”