IFP Supports VAT Hike but Urges Caution on Long-Term Impact
The Inkatha Freedom Party (IFP) has expressed conditional support for the recent increase in value-added tax (VAT), calling for the measure to be temporary rather than permanent.
During a media briefing in Durban on Monday, following its two-day national executive committee meeting, the IFP reaffirmed its stance despite being a member of the Government of National Unity (GNU).
The party was among those that voted in favour of the revised VAT hike in Parliament last week, after initially opposing the original 2% proposal.
Party leader Velenkosini Hlabisa stated that while the VAT increase would have a broad impact on South Africans, it was a necessary move given the country’s current financial challenges.
He pointed to revenue shortfalls and the need to sustain key social programmes as justifications for supporting the adjustment, noting that it could contribute positively to economic stability.
However, Hlabisa emphasised that the increase should not become a long-term solution. The IFP believes the VAT hike must be rolled back once more sustainable and inclusive revenue streams are identified.