Key Points
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Malema calls for the resignation of Godongwana and Pieterse following the VAT ruling.
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The court suspends the VAT increase, marking a win for the people.
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The DA and EFF push for a new, more inclusive budget to stimulate economic recovery.
EFF President Julius Malema has joined others in demanding the resignation of Finance Minister Enoch Godongwana and Director-General of the National Treasury Duncan Pieterse.
This call follows a court ruling that blocks the VAT increase from 15% to 15.5%, which was part of the 2025 Fiscal Framework.
The ruling has sparked growing concerns over the administration’s handling of South Africa’s economic policies.
Malema argued that the decision was a victory for the South African people, especially the poor and working-class citizens who would have borne the brunt of the VAT hike.
The EFF leader also criticized the government’s inability to form a credible budget and demanded that the two officials step down.
Court ruling halts VAT increase
The Western Cape High Court issued a ruling that halts the VAT increase, following a legal challenge from the EFF and the DA. The DA had called for Godongwana’s resignation before the ruling, and Malema echoed this demand.
Malema described the ruling as a win not just for the EFF but for the rule of law. He also emphasized that the court’s decision protected the people of South Africa from the impact of the VAT increase.
The EFF’s counterproposal included scrapping the VAT increase, introducing a wealth tax on unused land, and adjusting personal income tax brackets to ease the financial burden on citizens.
These measures, according to Malema, aim to promote economic recovery, create jobs, and restore vital public services.
DA welcomes court decision, demands new budget
Meanwhile, the DA praised the court’s decision, calling it a victory for the people of South Africa. Helen Zille, chairperson of the DA’s Federal Council, criticized the passage of the Fiscal Framework, calling it unlawful.
She welcomed the court’s ruling, which blocks the VAT increase set to take effect on May 1.
In contrast, Finance Minister Godongwana defended the original budget, arguing that it was constitutional and necessary to cover the R75 billion shortfall.
The public and political pressure continues to grow for a new budget that reflects more inclusive and transparent economic policies.
