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uMkhonto weSizwe (MK Party) Parliamentary Chief Whip, Mzwanele Manyi has called on Finance Minister Enoch Godongwana to focus on increasing corporate tax rather than increase VAT, warning that failure to do so would result in more protests.<\/span><\/p>\n The party staged a march on Monday, in Pretoria at the National Treasury offices protesting over the proposed VAT increase.<\/span><\/p>\n This comes after Godongwana postponed the Budget Speech last month due to disputes within the Government of National Unity (GNU) failing to reach consensus on the proposed two percentage-point VAT increase.<\/span><\/p>\n Manyi said the party took to the streets because their attempts to address the issue had failed.<\/span><\/p>\n \u201cOur members participate in the standing committee on Finance in Parliament and have raised these issues, but to deaf ears. We’ve written letters to the Minister. Nothing comes of it,\u201d Manyi said.<\/span><\/p>\n \u201cSo, we are forced to be here on the streets. Our message is very simple to the Minister of Finance – we are saying no to any increase in the VAT.\u201d<\/span><\/p>\n Manyi said the party strongly opposes the two percentage points, or even 0.5 percentage increase.<\/span><\/p>\n \u201cWe are saying nothing. In fact, we are saying we even have a scope to actually even reduce the VAT by two percentage points,\u201d he said.<\/span><\/p>\n Manyi said they argue that there are other avenues that the government could use to raise money, such as supporting the South African Revenue Services (SARS).<\/span><\/p>\n \u201cSARS is ready to go and rake out R400 billion. But only if they are assisted,\u201d Manyi said.<\/span><\/p>\n \u201cWe are saying we must clamp down on illicit financial outflows. These multinationals use price transfer schemes to evade tax. We need to clamp down on that, along with corruption.\u201d<\/span><\/p>\n <\/p>\n Manyi emphasised that the country cannot continue to tolerate fruitless wasteful expenditure without consequences.<\/span><\/p>\n He opposed the idea of zero-rating foodstuffs as a trade-off for a VAT increase.<\/span><\/p>\n \u201cYes, we can zero rate the foodstuff, but that must not be a trade-off to increase VAT at any level,\u201d Manyi said.<\/span><\/p>\n He added that increasing VAT would immediately lead to inflation and hurt the poor, who continue to pay for essential services, like transport, and electricity even if their food is zero-rated.<\/span><\/p>\n \u201cWe’re not interested in that. We are saying this government must exercise political will and be pro-poor.\u201d<\/span><\/p>\n Manyi called for a wealth tax on South Africa’s richest citizens.<\/span><\/p>\n \u201cAll those people living in Camps Bay must pay wealth tax and they won’t even feel it,\u201d he argued.<\/span><\/p>\n \u201cCorporate tax could go up by one percentage point. It’s not going to kill anyone, but it will solve the problem. So, we are saying the solutions are on the table.\u201d<\/span><\/p>\n He accused the government of lacking the political will to assist the poor and said it is out of touch with the realities of poverty and inequality in the country.<\/span><\/p>\n \u201cWe have the highest poverty and inequality in the whole world, a government that won\u2019t move an inch to solve that problem,\u201d Manyi added.<\/span><\/p>\n He warned that if Godongwana continues with the VAT increase on Wednesday, protests will intensify.<\/span><\/p>\n \u201cIf VAT goes up by two percentage points or by 0.75, it would result in more protests,\u201d Manyi said.<\/span><\/p>\n \u201cPicket lines, that’s all we’re going to do. We’re going to make South Africa come to a standstill. We’re going to bring our message and do a peaceful protest,\u201d he said.<\/span><\/p>\n Meanwhile, the party has also slammed the liquidation of Ithala Bank, arguing that the issues surrounding the bank’s closure were solvable.<\/span><\/p>\n \u201cWe are saying the technicalities around Ithala Bank are not matters that could not be resolved. Ithala Bank for all these years has been servicing our people diligently,\u201d Manyi said.<\/span><\/p>\n simon.majadibodu@iol.co.za<\/span><\/p>\n Politics<\/strong><\/p>\n Get your news on the go, click here to join the News WhatsApp channel. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":" uMkhonto weSizwe (MK Party) Parliamentary Chief Whip, Mzwanele Manyi has called on Finance Minister Enoch Godongwana to focus on increasing corporate tax rather than increase VAT, warning that failure to do so would result in more protests. The party staged a march on Monday, in Pretoria at the National Treasury offices protesting over the proposed […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[2445,8643,482,1424,13827,3056,17738],"class_list":["post-234064","post","type-post","status-publish","format-standard","category-politics","tag-country","tag-increases","tag-party","tag-put","tag-standstill","tag-threatens","tag-vat"],"yoast_head":"\n