Economic Freedom Fighters (EFF) treasurer-general Omphile Maotwe has proposed that the government consider introducing an 'apartheid tax'.
Image: Independent Newspapers
ECONOMIC Freedom Fighters (EFF) treasurer-general Omphile Maotwe has proposed that the government consider introducing an "apartheid tax" instead of increasing the Value Added Tax (VAT).
"Introduce an apartheid tax to everybody who inherited wealth in this country. When you know what happened to our people, that will give you far more money than the R28 billion you're looking for.
"But the easy target is the poor. Currently, we can't afford to put bread on the table. Now imagine, with the 0.5% VAT increase, our people will die of poverty. This triple oppression of poverty, inequality, and unemployment will just get worse," Maotwe said in an interview with broadcaster Newzroom Afrika.
Maotwe's comments come as the EFF and the Democratic Alliance (DA) are set to present oral submissions at the Cape Town High Court on Tuesday, opposing the 0.5 percentage point VAT increase adopted by Parliament earlier this month.
Finance Minister Enoch Godongwana has justified the 0.5% hike in VAT, warning that delaying the move could lead to serious and widespread repercussions for the country.
The African National Congress (ANC) secured support for the VAT increase without its primary partner in the Government of National Unity (GNU) and gained backing from several smaller parties, including ActionSA, which is not part of the coalition.
This was despite widespread opposition from ordinary South Africans and civil society, who argued that the increase would place more financial strain on the poor.
"That is our plea to the minister. They did not listen to us in the committee. They even unprocedurally adopted the report illegally. We went to the Speaker to bring the matter to her attention to say this happened in the wrong way," Maotwe said.
The EFF treasurer-general also called on the government to introduce a wealth tax.
"The minister says he is short of R28 billion on his budget, which is why he is increasing the VAT. But the increase will not give him R28 billion; it will give him R13.5 billion, so he will still be short.
"We are saying to him, you need to tax the rich. The corporate tax was at some point 29%, and it dropped to 27%. We are saying to him, take it back to 29%," Maotwe added.