The Inkatha Freedom Party (IFP) has emphasized the need for stability within the government of national unity (GNU) amidst tensions surrounding a proposed 0.5 percentage point increase in VAT. The party has urged that the fallout from this debate should not lead to the fracture of the coalition government.
Recently, Parliament narrowly voted in favor of a fiscal framework that allows Finance Minister Enoch Godongwana to explore alternatives to the VAT increase within the next 30 days. This decision was made despite opposition from the Democratic Alliance (DA), the second largest party in the GNU. The DA has taken legal action to challenge the decision.
IFP president Velenkosini Hlabisa addressed the media on Monday, stressing that while the VAT issue is significant, it should not be used as a weapon to destabilize the government. He emphasized the importance of maintaining stability within the coalition to address economic challenges and improve service delivery.
Hlabisa highlighted that there is a consensus among the 10 parties in the GNU to convene urgently and devise strategies to stimulate economic growth, reduce unnecessary spending, and reconsider the VAT increase.
Despite the IFP’s support for the budget and VAT increase, Hlabisa stated that the party will engage with its coalition partners to advocate for the VAT hike to be a temporary measure. He expressed optimism that with effective economic strategies, the 0.5 percent increase could potentially be reversed in the future.
The IFP leader also called for calm among parties in the KwaZulu-Natal provincial coalition government, emphasizing that disagreements at the national level should not disrupt governance at the provincial or local levels. He pointed out that the DA remains a part of the provincial executive in Gauteng despite tensions at the national level.
In KwaZulu-Natal, the DA holds the finance portfolio, and the IFP has expressed support for the provincial budget, citing its focus on service delivery and job creation. Hlabisa affirmed the IFP’s commitment to maintaining a stable government in the province, regardless of national tensions.
Overall, the IFP’s stance underscores the importance of unity and cooperation within the GNU to address economic challenges and provide effective governance for the benefit of all citizens.
