The ANC wants the government to consider a further range of measures to lessen the burden on the poor by the 1% hike in the VAT rate.
This emerged from the ANC’s National Executive Committee meeting which concluded on Sunday.
ANC Secretary-General, Ace Magashule said in a statement that “it was the view of the NEC that government must consider a further range of measures to alleviate any negative consequences on the poor that may be occasioned by the VAT increase, including additions to the list of zero-rated and tax exempted items.”
“The NEC committed to continuing engagement with all social partners on this and other matters arising from the State of the Nation Address and the Budget.”
Magashule said that ANC president Cyril Ramaphosa emphasised the need for ANC leaders and members to honour the deployments entrusted to them by the organisation and the need for consequence management where comrades fail to do so.
“The President’s political remarks further reflected on the budget delivered by the Minister of Finance, Comrade Malusi Gigaba, in Parliament specifically taking note of the constrained fiscal space South Africa finds itself in and the need for difficult decisions, including the proposed increase on Value Added Tax (VAT) to support government meet pressing social challenges,” he said.
Magashule said that National Executive Committee also confirmed the constitutional amendments and the resolutions of the 54th National Conference and these will now be publicly released.
He said the deployment of NEC members to Sub-Committees and Provinces has also been finalised, with the NEC also adopting a roadmap towards the 2019 General Elections.
Magashule said that workshop will be held to further reflect on the ANC’s state of readiness towards the elections.
“The NEC re-emphasised that all regions and provinces that are due to hold conferences must have done so by 31st May 2018,” he said.