Inkatha Freedom Party (IFP) leader Velenkosini Hlabisa says the proposed increase in Value-Added Tax (VAT) must be a temporary measure, stressing that it should be reversed once the state secures a more stable and sustainable source of income.
Hlabisa made the remarks during a media briefing on Monday, following the party’s National Executive Committee meeting. His comments come after the National Assembly passed the revised budget last week, with the IFP among the parties that supported it.
Defending the party’s position, Hlabisa emphasised that their backing of the budget is conditional, grounded in calls for fiscal discipline, greater transparency, and meaningful action to stimulate economic growth.
“What is most needed now is a good dose of honesty about the economy, about the dire situation our people face, and why the IFP supports the 0.5% VAT as a last-ditch interim solution,” Hlabisa stated.
The Economic Freedom Fighters (EFF), however, has rejected the VAT increase, arguing that it unfairly burdens the poor. The party has instead submitted alternative proposals to the National Assembly, which include adjusting personal income tax brackets in line with inflation and increasing corporate income tax.
As debate over the VAT hike continues, political parties remain divided on how best to plug the country’s revenue shortfalls while protecting vulnerable households. The IFP has made it clear that while it accepts the increase as a temporary necessity, it expects the government to move swiftly toward long-term fiscal solutions.