SACP forwards revenue shortfall proposals as Treasury returns to drawing board

MPUMALANGA - The South African Communist Party (SACP) has again forwarded its proposals to cover the revenue shortfall.

This comes as the National Treasury returns to the drawing board in an unprecedented budget reset.

Finance Minister Enoch Godongwana is expected to table the budget "3.0" this month, making it a third attempt in as many months.

The first two budgets failed following political pushback and public outcry over proposals to raise the standard value-added tax (VAT) rate by 2%, and then by a revised 0.5% this year.

SACP general secretary Solly Mapaila said part of the problem in the previous consultation rounds is that the communist party was snubbed.

Mapaila was speaking on the sidelines of the Congress of South African Trade Unions (COSATU)’s annual Workers' Day rally in Mpumalanga on Thursday.

"Essentially, bring back company tax. You’re going to get enough resources there. Deal with the question that COSATU [Congress of South African Trade Unions] president is raising about capacitating SARS [South African Revenue Service]. They need about R2 billion to get their things in order, and possibly in the short to medium term. According to the SARS commissioner, over R500 billion, that’s not a small intervention, it’s a serious area of consideration,” said Mapaila.