Godogwana Doesnt Have Powers To Reverse Vat Hike: Malema

The Economic Freedom Fighters EFF leader, Julius Malema says Finance Minister Enoch Godogwana does not have the powers to reverse the Value-Added Tax VAT increase because it was passed in Parliament.

Malema says the VAT increase must be nullified through a motion in the legislature.

Malema says, That letter is just for passing time because when something is passed in Parliament, government cannot write a letter to withdraw what was already passed because of what we call IT separation of powers. They must go back to where it was passed and say they are taking a motion to withdraw the approval of the budget fiscal policy.

On Thursday, Godongwana said that the 0.5 percentage point VAT would be reversed. The proposed VAT increase has ruffled feathers with the Democratic Alliance DA and EFF applying to interdict it in court, and some other parties in Parliament voting in support of it, pending conditions that the proposal would be revised.

Godongwana also tabled the Rates Bill, responsible for setting out different kinds of taxes.