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The Economic Freedom Fighters (EFF) has stressed that its recent meeting with the African National Congress (ANC) should not be interpreted as an unsuccessful attempt to undo the proposed increase in value-added tax (VAT). To break the ongoing budgetary impasse, an EFF delegation led by party president Julius Malema met with negotiators from the ANC's Government of National Unity (GNU) on Friday.

The EFF, which previously withheld support for the fiscal framework, stated that the current dialogue forms part of a broader budget process. This includes the upcoming consideration and approval of the Appropriations Bill and the Division of Revenue Bill. The EFF made it clear in the statement that they did not believe there was a legislative possibility of reversing the VAT increases. “Our engagements with the ANC must therefore not be mistaken as participation in a fruitless exercise to seek alternatives to the VAT increases within 30 days under the false hope that such alternatives will be implemented before May 1.

It stated, "This is simply not practical, realistic, or permissible by law." In a pointed remark, the party dismissed suggestions — most notably from ActionSA — that the proposed 0.5% VAT hike could be rolled back within 30 days. According to the EFF, such assertions are neither practical nor based on legislative reality. The EFF stated, "All political parties must take responsibility for their actions and desist from giving the people of South Africa false hope that non-binding recommendations can reverse what they supported." The Fiscal Framework and Revenue Proposal included VAT increases. On the budget issue, the ANC is negotiating with other political parties.

This meeting marked Malema’s first return to the negotiating table since the departure of the party's former deputy president Floyd Shivambu, who recently joined the uMkhonto weSizwe (MK) Party. Shivambu was the EFF's negotiation leader in the past, including during the ANC's initial GNU discussions. However, internal criticism had mounted over Shivambu’s role in several unsuccessful negotiations, with some EFF members attributing past breakdowns directly to his leadership. The EFF has made it clear that its involvement in the GNU discussions is not an attempt to craft an alternative to the proposed budget. Instead, the party insists that its participation is a part of a responsible legislative process that takes into account the current state of the economy.

In the meantime, the Democratic Alliance (DA) and the EFF are suing to prevent Parliament from passing the budget.

According to the statement, "The EFF engagements with the ANC are part and parcel of the road toward 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 GNU" Additionally, the EFF claimed to have distributed to the general public a comprehensive document containing sensible alternative revenue generation strategies.

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