GNU parties support 2025 fiscal framework and budget, opposition parties call it anti-poor
Opposition Members of Parliament (MPs) said the fuel levy increase in the budget was regressive and no different to the now-abandoned value-added tax (VAT) increase and would affect the country’s food security.
Finance Minister Enoch Godongwana during debate on the report on the Fiscal Framework and Revenue proposals on 11 June 2025. Picture: Parliament/Phando Jikelo
CAPE TOWN - While parties in the Government of National Unity (GNU) have supported the 2025 fiscal framework and budget, opposition parties have called it an assault on the poor.
Opposition Members of Parliament (MPs) said the fuel levy increase in the budget is regressive and no different to the now-abandoned value-added tax (VAT) increase and will affect the country’s food security.
MPs on Wednesday debated and were set to vote on the fiscal framework and revenue proposals tabled by the Finance Minister, Enoch Godongwana in May.
Parties like the Democratic Alliance (DA) and Inkatha Freedom Party (IFP) all supported the adoption of the fiscal framework, including the levy increase that saw petrol and diesel increase by 15 cents and 16 cents per litre, respectively.
The uMkhonto weSizwe (MK) Party’s Des van Rooyen slammed the move, saying it would have a knock-on effect.
“Parliament’s Finance Committee research think-tanks advised that hiking fuel levy is the most regressive taxation, far worse than VAT. It will increase food cost and compromise the country’s food security efforts.”
Economic Freedom Fighters (EFF) MP, Omphile Maotwe said the fiscal framework was anti-poor.
“This increase in the fuel levy is not just an attack on motorists, it’s a direct attack on the poor.”
The DA said while it opposed the earlier VAT increase proposal, it was satisfied with the current fiscal framework and supports the budget.
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