ANC Secretary-General Fikile Mbalula says cutting off ministerial privileges won't make a difference to the R2.7 trillion needed to fund the country's budget. Mbalula was responding to opposition parties who suggested cuts to ministers' perks.

TAX INCREASE WAS NEEDED 

On Wednesday, Godongwana presented a new tax proposal that includes an increase in VAT by 0.5 percentage points for the current financial year, with a similar increase planned for 2026. Mbalula said the tax increase over two years was a move the government needed to make to continue funding their critical programmes. Mbalula, who has held the ministerial position in three different portfolios, said that ministerial privileges have been altered for a long time. "Ministers used to drive cars in the range of R1 million; it was cut to R500,000. Perks like credit cards were taken away. Ministers are flying economy; that was cut as well from flying business locally. You only fly business internationally," he said. He added that the ANC supports the budget proposals recently tabled to Parliament by Minister of Finance Enoch Godongwana.

NOT BUDGING

The DA said they strongly opposed the tabled budget and that they would not support any increase in taxes unless those increases were temporary, and the ANC agreed to a series of major reforms that they say would grow the economy, create jobs, reduce waste, and bring down taxes within 3 years. "The ANC refused to agree to these measures and instead insisted on two likely permanent VAT increases, which cumulatively will increase VAT by 1% over the next 2 years. As a consequence, the people of South Africa will be poorer, and the future of the government is at risk," the party said in a statement. In the weeks to come, the ANC will be locked in discussions with its GNU partners to get them to support the budget.