MKP will not back the ANC on a VAT hike, says Floyd Shivambu

With only a week left for parliament to pass the budget, the Umkhonto weSizwe Party (MKP) has reiterated its rejection of Finance Minister Enoch Godongwana's proposed 0.5% increase in Value Added Tax (VAT).

Speaking to the media on the sidelines of the party's first high national command meeting after the last general elections in Durban on Wednesday, the party secretary-general Floyd Shivambu buried any hope that last week's meeting between the party’s parliamentary representatives and the ANC would result in the MKP backing Godongwana on the VAT hike. Shivambu poured cold water on the meeting, saying it carried no weight, describing discussions where serious decisions, like the passing of the budget, could not be made.

"We wish to correct the assertion that our party met with the ANC. It has never happened. The meeting people refer to was between parliament whips, which cannot be referred to as a party meeting. We have never held a bilateral meeting with the ANC, be it on joining the Government of National Unity (GNU) or discussing the VAT increase,” said Shivhambu.

He said even if the ANC were to approach the MKP today, it would not agree to any VAT increase even if it was 0.1%.

On whether the party has considered joining the GNU, Shivambu said this was not an option as the MKP is still challenging the results of last year’s general election. The former EFF deputy president said even if the MKP loses the case, it will not consider joining the GNU and would rather focus on the 2026 local government and 2029 general elections.

The party said it was also not interested in the debate about who president Cyril Ramaphosa must appoint to replace expelled US Ambassador Ebrahim Rasool, saying this was a matter for the governing parties in the GNU. However, Shivambu said his party’s views on South African foreign policy was that the country should focus on strengthening relations with countries in the BRICS bloc, in the Middle East as well as Southern American countries like Argentina.

In terms of the constitution, parliament needs a simple majority to pass the budget which means 201 parliamentarians must support it. 

With the ANC having 159 seats, provided all of them will be in parliament next week and also vote for the budget, the party needs 42 votes from other parties to pass the budget. The DA has indicated that it will not support a VAT increase and the ANC may need the support of the EFF if the VAT increase is to be approved.

Cape Times