ANC’s Mbalula calls for ‘constructive talks’ for future bills

African National Congress (ANC) Secretary General Fikile Mbalula has highlighted what he believes is the need for constructive talks when it comes to passing future bills.

Mbalula was speaking at a joint media briefing in Sandton, Johannesburg, attended by the 11 political parties who voted in favour of passing the budget with the understanding of possible reforms of the fiscal framework.

The ANC had to garner support from parties outside of the Government of National Unity (GNU) after opposition by the Democratic Alliance (DA) to the half-a-percentage-point VAT increase. The increase has since been abandoned.

Mbalula says constructive talks will be a priority moving forward.

“We will have to negotiate everything else now in the government of National Unity, that has got to happen. If we want a new bill, there is a process, if we want to pass a budget like now, there is a process. We’ve got to overtake. Uncharted waters means that the thing of passing the budget and treasury presenting it to parliament without talking about it, it’s over. We need to talk about the budget and its implications, even with parties outside the budget and those who are within. We need to talk about the budget, and this is what we said we need to do going forward,” Mbalula elaborates.

VIDEO | Fiscal framework discussion outcomes media briefing

The chief executive officer of the South African Institute of Tax Professionals says a VAT increase is a political issue and not a constitutional matter.

Professor Keith Engel says Finance Minister Enoch Godongwana shouldn’t be blamed for a Value Added Tax reversal since this was part of a larger decision that involved a Cabinet he is part of.

Some young people in Johannesburg have welcomed the decision by the Treasury to reverse the proposed VAT increase. The young people say this would have put a strain on their already tight budgets.

VIDEO | DA, EFF challenge May VAT increase in court