by TSAKANI CHAUKE
JOHANNESBURG, (CAJ News) – THE South African Communist Party (SACP) is opposed to the increase in value added tax (VAT) in the budget to be tabled in Parliament this week.
Minister of Finance, Enoch Godongwana is to present the budget on Wednesday.
SACP said it denounced and rejected “in advance” the budget if it entailed an increase in VAT.
Quoting some local and international media, it alleged a wider propaganda campaign driven by a certain circle within the National Treasury.
“This circle is pushing to increase VAT further after it was hiked from 14 per cent to 15 per cent in April 2018 against the explicit wishes of the working class,” SACP stated.
The organisation recalled the May 2024 election manifesto that SACP, as alliance partners, endorsed the government to tackling the cost-of-living crisis by prioritising food security, including through VAT exemption on essential items, not increasing VAT.
SACP believes instead, the National Treasury must introduce a wealth tax and a more progressive tax approach, focusing on generating revenue from the rich and wealthy to fund development and key priorities amid the high rates of inequality that characterise South Africa.
The organisation said this measure is essential for redistributing resources and addressing the deeply entrenched disparities in income and opportunity.
“The SACP will not stop at merely rejecting such a budget,” it stated.
“We will embark on a deep-going process of mass mobilisation of the working class against it until victory is achieved and secured.”
Cracks are widening between the SACP and its alliance partner, the African National Congress (ANC).
For the first time since independence in 1994, SACP will contest elections as a stand-alone, starting with the 2026 municipal polls.
– CAJ News