EFF stands firm on rejection of VAT hike ahead of budget speech

702's Clement Manyathela is joined by Nontando Nolutshungu, Chief Whip of the EFF in the National Assembly.

Listen below:

As Finance Minister Enoch Godongwana prepares to present his revised budget this afternoon, the EFF has reiterated its opposition to any proposals for increasing VAT.

Originally slated for earlier this year, Godongwana's address was delayed due to the failure of the Government of National Unity (GNU) to reach an agreement over a proposed 2% VAT hike.

Insiders say even at this late hour, the ANC and the DA have yet to agree on the fiscal framework.

Some economists predict a VAT increase of between 0.5% and 0.75%.

The EFF says a tax increase is not necessary.

"If they need money, there are places where we can cut. We can cut the number of deputy ministers and introduce a wealth tax."

- Nontando Nolutshungu

Despite calls from the EFF and some other political parties and unions, economists say an increase in corporate income tax or the introduction of a wealth tax is unlikely.

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With an agreement still not reached, the ANC may be forced to find support from other parties.

But Nolutshungu says the ANC has not yet approached the EFF.

"We haven't heard anything from the ANC and, as we had said, we are not willing to support a VAT increase. We have made that very clear."

- Nontando Nolutshungu

Godongwana is expected to address Parliament at 2 pm.

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Scroll up to the audio player to listen to the full interview.

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