LISTEN | Godongwana bristles at ‘rogue minister’ accusation over VAT increase

Finance minister Enoch Godongwana didn’t take kindly to being called “rogue” in parliament after defending his decision to increase VAT. He clashed with DA MP Mark Burke over accusations that he ignored the Treasury’s advice on the controversial tax hike.

Godongwana was responding to MPs' questions on the 2025 budget he tabled on Wednesday. The budget includes a 0.5 percentage point VAT increase — lower than the initial 2 percentage points increase he had planned but forced to rethink after pushback while on the brink of delivering the budget speech last month.

Burke asked the minister: “You stated that the 2% [point] VAT increase was your idea and you know that the DG [director-general] of Treasury at various instances warned you against that, and if that’s the case it seems that you are now acting contrary to the advice of Treasury. Would you then agree with me that you’ve now gone rogue and you’re undermining Treasury?”

In response, Godongwana dismissed the claim, saying Burke was misinformed. He said his team only had concerns about whether President Cyril Ramaphosa might alter the VAT proposal, which could affect budget deadlines.

“And I think the people who told you and you come to the conclusion that I’m a rogue minister — it’s wrong to refer to somebody like that. Let’s have respect for each other,” he said.

Listen to the exchange:

The proposed VAT hike has faced opposition from several political parties, including the DA, EFF, MK Party, ActionSA, Build One South Africa and the African Christian Democratic Party.

During the parliamentary session UDM deputy leader Nqabayomzi Kwankwa questioned whether the VAT increase would truly contribute to the minister’s projected economic growth, especially since another VAT hike is already planned for next year.

EFF MP Sinawo Thambo also criticised the plan, saying taxation cannot drive economic growth.

The fate of the VAT increase remains uncertain. The national budget, including the VAT hike, still requires parliamentary approval. The ANC's Fikile Mbalula has said the party will seek support from parties outside the government of national unity (GNU) to secure its passage as internal divisions could pose a challenge.