Malema joins call for Godongwana's resignation after VAT court defeat

EFF LEADER Julius Malema has joined the chorus calling for Finance Minister Enoch Godongwana, along with his director-general Duncan Pieterse, to resign over the VAT debacle. 

The Red Berets leader made the call during a media briefing 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 VAT increase from 15% to 15.5%.

The EFF and the DA had approached the court to have Godongwana’s VAT increase announcement, as well as the adoption of the finance committee’s report by both Houses, set aside.

The DA, part of the Government of National Unity alongside the ANC, initially called for Godongwana's resignation.

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. 

"In light of this decisive judgment, the Economic Freedom Fighters call for the immediate resignation of Finance Minister Enoch Godongwana and National Treasury director-general Duncan Pieterse. These individuals have proven themselves incapable of formulating a lawful, credible, and developmental Budget," Malema said.

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.

He further accused the ANC of institutional betrayal. 

"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.

Malema said a credible third 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 has 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 noted 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.