Tuesday, 29 April 2025

The Economic Freedom Fighters (EFF) has formally written to the Speaker of the National Assembly, Ms. Thoko Didiza, and to the Chairperson of the Standing Committee on Finance, Dr. Joseph Maswanganyi, raising urgent concerns regarding the illegal processing of the Rates and Monetary Amounts and Amendment of Revenue Laws Bill. We expect their urgent written responses, and we place it on record that any further failure to respond will not be tolerated.

The EFF reiterates its longstanding position that we reject the VAT increase that was proposed in the 2025 Budget. We welcome the ruling of the Western Cape High Court, which suspended the 0.5% VAT increase and prevented it from coming into effect on 1 May 2025. This vindicates our efforts to protect the people of South Africa from unjustified and economically harmful tax hikes during a time of deep economic distress.

However, the Court’s decision to set aside the 2025 Fiscal Framework and Revenue Proposals requires Parliament to return to first principles. It is now imperative that the correct constitutional and legislative process be followed. The Minister of Finance must table a new budget, and Parliament must openly and transparently engage on a revised 2025 Fiscal Framework and Revenue Proposals that genuinely respond to the current economic crisis facing the nation — particularly the crises of mass unemployment, stagnant growth, and deteriorating infrastructure.

The EFF warns both the Speaker and the Chairperson against engaging in political expediency. The Constitution and the Money Bills Amendment Procedure and Related Matters Act, 2009, are clear: no revenue proposals can be processed without an adopted fiscal framework and Division of Revenue Bill. Attempting to shortcut or bypass these fundamental requirements will render the proceedings unlawful and open Parliament to constitutional disgrace.

Should the Standing Committee on Finance proceed with the meeting scheduled for Wednesday, 30 April 2025, or persist with processing the Rates Bill without an adopted fiscal framework, the EFF will urgently approach the courts for relief. In doing so, we will demand punitive personal costs against the Speaker and Chairperson for acting irrationally and in wilful defiance of the court order that clearly reset the budget process.

There is no urgency so compelling as to justify illegality. The VAT increase has already been suspended. There is no justification for rushing through defective processes. It is better to act lawfully, transparently, and in the public interest, than to act in desperation driven by political convenience.

The EFF remains committed to defending the Constitution and upholding the rule of law. We will oppose any attempt to undermine democratic processes and the fundamental rights of Parliament and the people it represents.

ISSUED BY THE ECONOMIC FREEDOM FIGHTERS

Leigh-Ann Mathys (National Spokesperson) 082 304 7572

Thato Lebyane (Media Enquiries) 078 304 7572