The Inkatha Freedom Party (IFP) has expressed its support for the country's budget, contingent upon the understanding that the VAT increase must be a temporary measure. The party made these remarks during its 50th anniversary celebration in Ulundi on Sunday.
Speaking on matters of economic justice, party leader Velenkosini Hlabisa stated that one of the IFP’s main priorities is to participate in rebuilding the economy to support its visionary plans and programmes.
“Some of these plans were articulated in the IFP's 2024 manifesto, where they emphasised the need to grow the economy, invest more in construction and infrastructure, and increase grants for the most vulnerable,” he said.
The party also highlighted the necessity for more and better-paid teachers, doctors, and nurses, as well as greater support for NGOs. In the 2024 manifesto, the IFP said it is committed to advocating for more food items to be zero-rated and opposes any increase in the fuel levy, as it triggers rises in food prices and transport costs.
It said much of these pledges are reflected in the budget tabled by the Minister of Finance, Enoch Godongwana, on March 12.
“The proposed budget is supported with conditions. The first condition is that the VAT increase must be temporary and should be removed as soon as more viable economic income streams are secured.
“Secondly President Cyril Ramaphosa is expected to call an urgent Cabinet meeting to discuss measures for economic growth and to review spending patterns across all departments. While the IFP supports the budget, it remains committed to accountability for effective and transparent fiscal management.
“It is clear that we need to tighten the loopholes. One such loophole is the R800 billion that is currently not collected by the South African Revenue Service (SARS). All efforts must be made to ensure that SARS is able to collect these billions owed to the fiscus,” the party stated.
The IFP said it also remains opposed to further borrowing.