EFF Shuts Down Hopes of VAT Reversal in Meeting with ANC

The Economic Freedom Fighters (EFF) has made it clear that its recent talks with the African National Congress (ANC) will not lead to the reversal of the proposed 0.5% increase in value-added tax (VAT), calling such expectations both unrealistic and legally impossible.

The party issued a statement following its engagement with ANC negotiators, stressing that their involvement in the ongoing budget discussions does not mean they believe the VAT hike can be undone. The EFF’s leader Julius Malema was part of the meeting, his first direct role in national coalition talks since the 2024 elections.

EFF Statement On Meeting With African National Congress.

The EFF engagements with the ANC are part and parcel of the road towards the upcoming budget process, and form part of the ANC’s outreach to other political parties in its claimed efforts to reset and/or reconfigure the… pic.twitter.com/VpFubR0lcl

— Economic Freedom Fighters (@EFFSouthAfrica) April 11, 2025

“This engagement should not be mistaken for an attempt to stop the VAT increase within 30 days,” the EFF said. “There is no legal path to reversing the tax hike, which was supported by multiple parties during the fiscal framework process and passed in the National Assembly.”

The EFF’s comments appear to challenge claims by parties such as ActionSA, which argue that the VAT rise can be quickly scrapped through political negotiation.

The meeting took place as tensions continue within the Government of National Unity (GNU), which was formed after no party secured a clear majority in 2024. Conflicting visions within the alliance have pushed the ANC to consider new partnerships and revisit existing agreements.

While the EFF remains highly critical of the GNU — especially the role of the Democratic Alliance (DA), which it accuses of blocking progressive reforms — the exact terms of their latest talks with the ANC remain unclear.

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Sourced:African Insider

Picture: Getty Images