Ramaphosa Confident Budget Will Pass Despite VAT Hike Opposition in Parliament
South Africa’s President Cyril Ramaphosa remains confident that the country’s budget for the upcoming fiscal year will be passed, despite facing opposition from some members of Parliament over the proposed increase in value-added tax (VAT).
The budget, which was announced by Finance Minister Malusi Gigaba last month, has been met with mixed reactions. While some have praised the government’s efforts to address the country’s economic challenges, others have expressed concern over the proposed VAT hike from 14% to 15%.
However, President Ramaphosa has assured the public that the budget will be passed and that the government is committed to finding solutions to the country’s economic woes.
In a recent address to the nation, Ramaphosa said, “We understand the concerns raised by some members of Parliament and the public regarding the VAT increase. But we want to assure you that this decision was not taken lightly. It is a necessary step in order to stabilize our economy and ensure that we can continue to provide essential services to our people.”
The proposed VAT increase has been met with criticism from opposition parties, who argue that it will have a negative impact on the poor and vulnerable in society. However, the government has stated that measures will be put in place to mitigate the impact on the most vulnerable, such as increasing social grants and exempting basic food items from VAT.
Ramaphosa also highlighted the need for all South Africans to work together in order to overcome the challenges facing the country. He urged all political parties to put aside their differences and focus on finding solutions that will benefit the nation as a whole.
“We cannot afford to be divided at a time when we need to be united in our efforts to turn our economy around. We need to work together, across party lines, to find solutions that will benefit all South Africans,” he said.
The President’s confidence in the passing of the budget is also shared by members of his own party, the African National Congress (ANC). ANC Chief Whip Jackson Mthembu has expressed his belief that the budget will be passed with the necessary support from all parties.
“We are confident that the budget will be passed. We have engaged with all parties and we are working towards finding common ground. We understand the concerns raised by some, but we believe that the budget is in the best interest of the country,” Mthembu stated.
The proposed VAT increase is just one of the measures outlined in the budget to address the country’s economic challenges. Other measures include cutting government spending, increasing taxes on luxury goods, and implementing a new top tax bracket for high-income earners.
The government has also emphasized the need for economic growth and job creation in order to boost the country’s economy. President Ramaphosa has made it a priority to attract investment and create an enabling environment for businesses to thrive.
In conclusion, while the proposed VAT hike may be met with opposition, the government remains steadfast in its commitment to stabilizing the economy and providing essential services to all South Africans. President Ramaphosa’s confidence in the passing of the budget is a testament to the government’s determination to find solutions and move the country forward. It is now up to all political parties to put aside their differences and work together towards a better future for all.
