With just one week remaining for South Africa’s parliament to pass the 2025 national budget, the Umkhonto weSizwe Party (MKP) has doubled down on its opposition to Finance Minister Enoch Godongwana’s proposed 0.5% increase in Value Added Tax (VAT). The announcement came during a media briefing on the sidelines of the party’s first high national command meeting since the 2024 general elections, held in Durban on Wednesday.
MKP Secretary-General Floyd Shivambu dismissed speculation that recent talks with the African National Congress (ANC) could lead to a compromise on the VAT hike. Addressing reporters, he clarified that no formal bilateral meeting had taken place between the MKP and the ANC, contrary to public assumptions. “We wish to correct the assertion that our party met with the ANC. It has never happened,” Shivambu said. “The meeting people refer to was between parliamentary whips, which cannot be referred to as a party meeting. No serious decisions, like the passing of the budget, could be made there.”
Shivambu was unequivocal in rejecting any VAT increase, stating that even a minimal rise of 0.1% would be unacceptable to the MKP. “Even if the ANC were to approach us today, we would not agree,” he asserted, underscoring the party’s stance against policies it views as detrimental to South Africa’s working class and poor.
The MKP also ruled out joining the Government of National Unity (GNU), a coalition formed by the ANC and nine other parties after the ANC lost its parliamentary majority in last year’s elections. Shivambu, a former deputy president of the Economic Freedom Fighters (EFF), said the party remains focused on challenging the 2024 election results in court. “Joining the GNU is not an option,” he said. “Even if we lose the case, we will not consider it. Our focus is on the 2026 local government elections and the 2029 general elections.”
The party distanced itself from debates over the replacement of expelled US Ambassador Ibrahim Rasool, with Shivambu calling it a matter for the GNU parties. However, he outlined the MKP’s foreign policy priorities, advocating for stronger ties with BRICS nations, Middle Eastern countries, and Southern American states like Argentina.
Under South Africa’s constitution, passing the budget requires a simple majority in the 400-seat National Assembly, meaning at least 201 parliamentarians must vote in favor. The ANC, with 159 seats, would need an additional 42 votes from other parties if all its members attend and support the budget next week. However, the Democratic Alliance (DA), the second-largest party with 87 seats, has already signaled it will not back the VAT increase, putting pressure on the ANC to secure support elsewhere.
Analysts suggest the ANC may turn to the EFF, which holds 39 seats, to bridge the gap. However, the EFF has also opposed the VAT hike, leaving the budget’s fate uncertain. The MKP, with 58 seats, could play a pivotal role, but Shivambu’s remarks indicate no willingness to negotiate on the issue.
As the budget vote approaches, the deadlock highlights the fragility of the GNU and the challenges facing Godongwana’s fiscal plan. The proposed 0.5% VAT increase, intended to raise additional revenue amid sluggish economic growth, has sparked widespread resistance from opposition parties and some GNU partners, setting the stage for a tense parliamentary showdown.
