The Freedom Front Plus (VF Plus) today voted against the Fiscal Framework and is still campaigning for a better budget that offers tax relief and no VAT increase.
The Freedom Front Plus is convinced that raising VAT is not viable; the other parties in Parliament are clearly opposed to such an increase as well.
There are other ways to amend the current Fiscal Framework to address the budget deficit without increasing tax.
In the past, Parliament was chiefly used as a rubber stamp to adopt budgets. Times are changing, though, and these changes should be employed for the public’s benefit who cannot be saddled with more tax.
All avenues should be pursued to find sustainable solutions for overcoming the current fiscal crisis. Increasing tax, such as VAT, is counterproductive and nothing but a desperate short-term measure that will eventually let the country sink even deeper into the financial quagmire.
South Africans are already reeling as a result of the country’s declining economy, growing unemployment and poor service delivery.
A tax revolt is to be expected if there are further tax hikes, no economic growth and no improvement in service delivery.
Ineffective state expenditure and squandering should be addressed, while better policies aimed at stimulating economic growth are implemented.
The Freedom Front Plus decided to join the Government of National Unity (GNU) precisely because it wants to contribute to creating an environment favourable for economic growth. So, that is why the party voted against this Framework, which will have the opposite effect.
