The Inkatha Freedom Party (IFP) welcomes and supports the decision of the National Assembly to accept the postponement of the 2025 Budget Speech by the Minister of Finance today.
As a party committed to responsible governance and economic justice, the IFP does not support a proposed 2% increase in VAT. This position was strongly conveyed in Cabinet today. We firmly believe that increasing VAT would disproportionately impact ordinary citizens, particularly the poor and working-class households, by making essential goods and services more expensive.
A VAT increase would also run contrary to the commitments of the Government of National Unity (GNU) to reduce the cost of living and promote economic relief. At a time when many South Africans are already struggling with the high cost of food, fuel, and basic services, adding an additional tax burden would be unjust and counterproductive to economic recovery efforts.
The IFP maintains that the National Treasury must adopt a more deliberate and strategic approach to revising the budget. This should include robust cost-cutting measures, eliminating wasteful expenditure, and prioritizing efficiency in public spending. On the 12th of March 2025, a pro-poor budget must be presented—one that advances socio-economic relief, economic development, and job creation while safeguarding the most vulnerable in our society.
Today’s postponement of the Budget Speech is a clear testament to the fact that the GNU is not a rubber-stamping government but rather a government of engagement and accountability. It demonstrates a commitment to ensuring that critical fiscal decisions are made through thorough deliberation and consensus-building, rather than being rushed through without proper scrutiny.
The IFP remains steadfast in advocating for a budget that upholds the principles of equity, sustainability, and responsible financial management. We will continue to work constructively within the GNU to achieve a fair and people-centered economic framework for all South Africans.
Issued by:
Mkhuleko Hlengwa MP
IFP National Spokesperson
Inkatha Freedom Party
Contact:
Ayanda Zulu
IFP National Media and Communications Officer
082 866 4029
