Maimane hopes parties can find 'workable solution' on budget after meeting ANC
He’s also looking forward to presenting alternatives to the 0.5% value-added tax (VAT) increase currently in the budget, saying these could raise some R120 billion in revenue.
FILE: Build One South Africa (BOSA) leader Mmusi Maimane. Picture: Jacques Nelles/EWN
CAPE TOWN - Build One South Africa leader Mmusi Maimane is hopeful parties will be able to find a “workable solution” on the budget after Tuesday tonight’s meeting with the African National Congress (ANC).
He’s also looking forward to presenting alternatives to the 0.5% value-added tax (VAT) increase currently in the budget, saying these could raise some R120 billion in revenue.
Maimane was briefing the media in Parliament to outline BOSA’s next steps in the national budget process.
Maimane will go into Tuesday night’s meeting with the ANC on the budget with a list of options he hopes will prevent the VAT hike.
He says they’ve identified R120 billion in a combination of new revenue that can be delivered in an adjusted budget.
This includes a new “sin tax” on online gambling.
“Now we want to declare all online gambling, sports betting, to become taxed at six percent as a sin tax that will raise our income at least in the medium term closer to about R85 billion.”
While the gnu is still not united on the budget, Maimane says he’s hopeful of a solution.
“There is an appetite across all parties to find workable solutions.”
Even as the vat increase kicks in on 1 May 2025, there is hope among some smaller parties like BOSA and ActionSA that this can be prevented.
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BOSA: VAT INCREASE REVERSAL IS NON-NEGOTIABLE
BOSA insists a VAT increase reversal is a non-negotiable condition.
The party’s deputy leader, Nobuntu Hlazo-Webster says the most vulnerable will be the most affected and the impact on the economy would be dire.
ActionSA also listed some alternatives to the VAT increase they say will raise up to R120 billion in revenue like the introduction of a new 6% “sin tax” targeting online gambling.
“we’re engaged on the alternatives we’re putting on the table and we have remained engaged throughout the course of last week. the first is that we have been clear that a reversal of the vat increase has to happen. we’ve been clear that vat disproportionally affects the poor and working-class households.”