Minister Gordhan must explain capitulation on Tax Bill

18 February 2016

The DA will write to the Minister of Finance, Pravin Gordhan, to request that he make a Ministerial Statement in terms of Rule 106(1) of the National Assembly Rules. This should be done before his budget speech scheduled for early next week. Specifically, he must publicly dispel allegations that the postponement of the Tax Bill was a result of insistent and undue political influence from Cosatu. 

This comes after it was announced today that the effective date for the Tax Laws Amendment Bill will once again be delayed until early 2018 despite this Bill having been assented to by the President in December 2015. Cosatu disputed the implementation of the Bill and has threatened to strike and remove support for the ANC in the upcoming Local Government Elections.

Because the ANC in government does not want to lose the support of its biggest alliance partner, they have chosen to bend to Cosatu’s will at the expense of much needed policy certainty at a time when our economy is projected to grow at an anaemic 0.5%. This at a time when economic growth and stability should be the apex of government’s priority to create jobs.

This will also place an immense amount of pressure on Parliament to fast-track this legislation thereby making it complicit in the mess the ANC has created within the tripartite alliance. Parliament deserves answers and must use its powers and haul Minister Gordhan before it to explain if he will not come on his own accord.

In making his statement Minister Gordhan should:

• Provide a full explanation on the reasons for this abrupt U-turn; and

• The impact this will have on the South African economy.

Again the ANC in government has put itself and its survival first and the nation second. South Africa can ill-afford our economic policy being a victim of an ANC-created mess within the alliance.

Statement issued by Alf Lees MP, DA Shadow Deputy Minister of Finance, 18 February 2016