WATCH: Suspension of VAT increase ‘necessary intervention,’ Malema says

EFF leader Julius Malema said the suspension of the VAT increase was a “necessary intervention”.

Malema was addressing a media briefing following the Western Cape High Court Order on Sunday, which suspended the 0.5% VAT increases and set aside the 2025 Fiscal Framework and revenue proposals.

The DA and EFF approached the court to have the VAT increase announcement by Finance Minister Enoch Gondongwana, including the adoption of the Joint Standing Committee on Finance’s report by the National Assembly (NA) and the National Council of Provinces (NCOP), set aside.

The poor

Malema said the EFF has maintained that fiscal adjustment must not occur at the expense of the poor and the working class.

“Unwilling to listen and arrogant, the minister returned to Parliament on 12 March 2025 with a so-called revised budget. Yet the core proposal remained the same: a VAT increase, albeit now by 0.5% for the 2025/26 financial year.

“The EFF immediately rejected this revised budget, rightly identifying it as a shallow political compromise aimed at appeasing financial markets, not a genuine response to economic stagnation and mass unemployment. We maintained that fiscal adjustment must not occur on the backs of the poor and the working class,” Malema said.

WATCH Julius Malema speaking about the meeting with the ANC

[WATCH] EFF Leader Julius Malema says the ANC asked the party to abstain from voting on the budget so that they can get the numbers. #Newzroom405 pic.twitter.com/4RqC9umHzP

— Newzroom Afrika (@Newzroom405) April 28, 2025

ALSO READ: Godongwana to table new budget instruments after court halts VAT hike

New budget

Following the High Court ruling, Godongwana will now have to table the budget instruments from scratch with new revenue proposals.

This was after he received a letter from National Assembly Speaker Thoko Didiza asking him to table alternative revenue proposals by 2 May.

‘Doing the right thing’

Malema said public money was wasted twice as two of the budgets haven’t succeeded, asking what the chances are that budget 3.0 will be done properly.

“A day gets called special for him (Gondongwana). Money was used for the second time to do illegal activities, even when you are told this is illegal, they went to waste public money on illegal activities.

“We’re now going for the third time, we’re using public money for the third time. We’re not sure if he’s going to do the right thing or not, because he has not demonstrated in the past two budgets that he has got the capacity to do the right thing. So we hope that they will listen to the logic, especially in the Committee on Finance,” Malema said.

Malema added that  South Africa now faces an urgent task.

“A credible 3rd budget for the 2025/26 financial year must be tabled by no later than July 2025. The current government must either deliver a lawful budget within this time frame or accept that its failure to do so will trigger a constitutional crisis leading to its collapse and fresh elections.”

[WATCH] EFF Leader Julius Malema says the EFF has maintained that fiscal adjustment must not occur at the expense of the poor and the working class. pic.twitter.com/RPIYxH3LD4

— SABC News (@SABCNews) April 28, 2025

ALSO READ: Western Cape High Court orders scrapping of the 0.5% VAT increase

Voting with the ANC

Malema said the ANC asked the EFF to abstain from voting on the budget so that they can get the numbers.

“You saw that meeting we had with ANC by the toilet there in Parliament. There is a picture where were standing next to the toilet. The ANC was asking us to abstain so that they can get the numbers, because they were not sure about the numbers, they were asking us to abstain.

“They went to do that to NCC, they said they must abstain. So the NCC, having known that they participated in the Progressive Caucus, and the position that was taken there. They were not prepared to abstain being physically there so they pretended like they are going outside for something and they disappear,” Malema said.

During a plenary session held at the Nieuwmeester Dome in Cape Town earlier this month, 194 Members of Parliament (MPs) voted in favour of the Standing Committee on Finance’s report on the fiscal framework and revenue proposals, while 182 MPs opposed it.

[WATCH] EFF Leader Julius Malema says his party is now the official opposition in Parliament after Western Cape High Court suspended the VAT hike on Sunday following the urgent interdict to suspend the move. pic.twitter.com/9BuNE10yHx

— Newzroom Afrika (@Newzroom405) April 28, 2025

Resignations

During the briefing, Malema also called for the resignation of Godongwana and National Treasury Director-General Duncan Pieterse.

“These individuals have proven themselves incapable of formulating a lawful, credible, and developmental budget. They have lost the confidence of the people of South Africa, and the business community should not trust them.

“It is the business community that has spent billions on changing their VAT systems for nothing and should pursue any means necessary to hold the government accountable,” Malema said.

Malema said his party is now the official opposition in Parliament after the Western Cape High Court suspended the VAT hike on Sunday following the urgent interdict to suspend the move.

ALSO READ: Godongwana consents to court order against VAT increase