EFF leader Julius Malema.
Image: Timothy Bernard / Independent Newspapers
EFF president Julius Malema has joined the chorus calling for Finance Minister Enoch Godongwana along with his Director-General, Duncan Pieterse, to resign over the VAT battle.
The Red Berets leader made the call during a media briefing on Monday, after the Western Cape High Court’s full bench set aside the adopted 2025 Fiscal Framework and Revenue Proposals and suspended the implementation of the 0.5 percentage point VAT increase which was set to come into effect on May 1.
The EFF and the DA had approached the court to have the VAT increase announcement by Godongwana as well the adoption of the finance committees' report by both Houses set aside.
After the matter was argued, the Finance Minister announced that the VAT increase would not be implemented.
However, the court matter continued as the DA said the court must specifically issue an order to stop the VAT increase, on the basis that the Fiscal Framework was unlawfully adopted in the both the Finance Portfolio Committee and Parliament itself.
The order was granted by consent of all parties.
Malema stated that the court's decision represents a victory for the people of South Africa, especially the poor and working class, who would have been severely impacted by the VAT increase.
"This ruling is not just a victory for the EFF — it is a victory for the people of South Africa. It is a victory for the rule of law. It is a victory for the poor and working class, who would have suffered greatly under the VAT increase," Malema said.
He demanded the immediate resignation of Godongwana and Pieterse, saying they have proven themselves incapable of formulating a lawful, credible, and developmental Budget.
The EFF had proposed alternative measures to the National Treasury's austerity-driven framework, including rejecting the VAT increase, adjusting personal income tax brackets, increasing corporate income tax, and introducing a Wealth Tax on underutilised and luxury landholdings.
Malema said these proposals reflected a credible, progressive, and transformative approach to fiscal policy.
Malema further accused the ANC of institutional betrayal, saying they undermined democracy and the law by steamrolling the 2025 Fiscal Framework through deceitful tactics.
"Because the ANC no longer enjoys a majority in Parliament and its committees, it chose to undermine democracy and the law by steamrolling the 2025 Fiscal Framework through deceitful tactics," Malema said.
He said a credible Budget for the 2025/26 financial year must be tabled by no later than July 2025, adding that the EFF stands ready to engage meaningfully and table substantive proposals to ensure the new Budget focuses on economic recovery, industrialisation, mass employment, and the restoration of public services.
Meanwhile, the DA, which had initially called for Godongwana's resignation, has also hailed the decision as a victory for all South Africans.
DA Federal Council chairperson Helen Zille said passing the tax framework was unlawful.
"The passing of the Fiscal Framework through Parliament was unlawful, and the court has found that and that has also been made an order of court. So now the VAT increase won't come into play on May 1 and we can get on with redoing the Fiscal Framework," Zille said.
The finance minister welcomed the court order, however, he defended his initial Budget proposal.
He said the proposal was constitutional and appropriate given the limited options at his disposal to find the R75 billion shortfall.
The ANC said the court provided legal certainty affirming the decision already taken by Godongwana.
"Parliament is now expected to pronounce on the way forward on the processing of the envisaged changes to the revenue proposals and the expenditure adjustments."
Cape Argus