The uMkhonto weSizwe Party (MK Party) has condemned the ANC-led government’s reversal on the proposed VAT increase, calling it a desperate and dishonest move to mask a failed austerity agenda.
This comes after Finance Minister Enoch Godongwana scrapped the 0.5% Value Added Tax (VAT) hike that was set to take effect on May 1. VAT will remain at 15%.
The decision to forgo the increase follows extensive consultations with political parties and careful consideration of the recommendations of parliamentary committees, the National Treasury confirmed in a statement on Wednesday night.
By not increasing VAT, the estimated revenue will fall short by around R75 billion over the medium term, his ministry said.
previously reported that the MK Party was among the parties that voted against the passing of the 2025 fiscal framework, alongside the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF).
According to the MK Party, this is not a victory for the people, but a clear sign of policy failure by an “uncaring, visionless government.”
In a statement, the party accused the ANC of manufacturing a fiscal crisis to justify punishing the poor. “This was never about fiscal discipline – it was a callous experiment in pain tolerance. And it failed,” said MK Party spokesperson Nhlamulo Ndhlela.
The party argues that the initial proposal to hike VAT by 2%, later “compromised” to 1%, was a calculated move to gauge public resistance.
Now that the government has withdrawn the hike under pressure, including what the MK Party describes as “fierce resistance by the MK Party,” they say it is absurd to expect public gratitude.
“We will not clap for the same thieves who nearly robbed our people in broad daylight. This is not leadership: it is cowardice wrapped in spin,” Ndhlela said.
The MK Party claims the ANC continues to uphold economic structures rooted in apartheid, shielding white capital while turning on the black majority.
With over 30 million South Africans in poverty and youth unemployment surpassing 60%, the statement slams government priorities, highlighting continued spending on “VIP protection, mansions and bloated tenders” while cutting essential services.
Ndhlela warned that the government’s next move, so-called austerity measures, would cut even deeper into social welfare, education, and healthcare. “These are not solutions – they are acts of sabotage, dressed up as tough choices,” he said.
The MK Party reiterated its call for a Wealth Tax to reduce inequality without burdening the poor, accusing the ANC of protecting their wealthy backers at the expense of the majority. “They want South Africans to celebrate the price of their failure,” said Ndhlela.
“We still live under a suffocating 15% VAT regime, one of the highest in the developing world.”
The party also raised concerns about the legality of the reversal, arguing that the initial budget containing the VAT increase had already been passed by Parliament. It is now demanding that the fiscal framework be referred back to the Standing Committee on Finance, stating: “Democracy demands transparency, not ANC improvisation behind closed doors.”
The party also declared its intent to continue challenging the government on all fronts – “in Parliament, in court and in the streets” until economic justice is realised.
“We were not born to beg. We were not born to celebrate crumbs. We were born to take back the bakery.
“The party noted that neither the ANC, the DA, nor their foreign-controlled Government of National Unity (GNU) can distract them with spin or retreat speeches. ‘We are unmoved,” it said.
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