Treasury dismisses accusations Godongwana was deceptive in VAT talks with ActionSA

CAPE TOWN - The National Treasury has dismissed accusations that the Finance Minister was being deceptive when he told Action SA there was a possibility to reverse the value-added tax (VAT) increase and amend the fiscal framework.

Treasury and the Economic Freedom Fighters (EFF)'s legal representatives have been making arguments in the Western Cape High Court as part of the Democratic Alliance’s(DA) challenge to interdict the VAT increase and have it set aside.

The EFF also accused Minister Enoch Godongwana of admitting to lying to the party that the 0.5% VAT increase could be changed before its implementation next week Thursday.

ALSO READ: EFF describes Parliament's process to adopt VAT increase as 'farcical'

The EFF’s counsel, Advocate Tembeka Ngcukayitobi, told the Western Cape High Court that Godongwana was being deceptive when he told ActionSA that the VAT increase could be reversed.

ActionSA had recommended that the National Treasury find alternatives to the VAT increase within 30 days as a condition to voting in favour of the fiscal framework.

But all indications are that the VAT increase will go ahead despite this, with Godongwana defending the increase in court.

National Treasury's senior counsel, Advocate Mahlape Sello, argues the minister didn't deceive anyone.

"The sum total of the minister’s response is firstly to deny there was deception on his part, secondly to rely on the actual speech he made on the 12th of March."

Sello told the court that a comparison of the speech and the allegations of the eff will demonstrate that there was no deception.

Sello also accused the DA of trying through “judicial intervention”, to do what it failed to do in Parliament.