The uMkhonto weSizwe Party (MKP) on Friday termed the proposed value added tax (VAT) increase a “declaration of war” against the black working-class and poor, and black small business owners, and said it is engaging with “progressive forces” to mobilise a national shutdown.

On Wednesday Finance Minister Enoch Godongwana tabled his delayed Budget that included lower, yet still controversial, increases to the value added tax (VAT) rate, as he sought to hold the fiscal-consolidation line amid rising spending pressures.

The new proposal involved increasing the VAT rate by 0.5 percentage points in 2025/26 to 15.5% and by 0.5 percentage points in 2026/27 to 16%, rather than the immediate two percentage point hike to 17% proposed in the aborted Budget of February 19.

The proposals have to be voted on before being adopted by Parliament by the end of March, with various political parties, including Government of National Unity partners, vowing to not support it.

Earlier this week, the MKP marched in Pretoria, voicing its concerns, and it is now urging “aligned formations” across South Africa to prepare for mass resistance.

“…this white capital-led regime has declared war on the poor, now the people will declare war on their corruption, neoliberalism and betrayal,” said MKP national spokesperson Nhlamulo Ndhlela.

“There comes a moment in a nation's life when it must choose to fight or submit. We believe the time has now come for us to fight. The Ramaphosa administration's reckless decision to increase VAT by 0.5% is nothing short of economic assault on the black poor majority and struggling small businesses in this country,” he said.

Ndhlela noted that this “punitive, anti-poor and working-class” measure came at a time when millions were barely surviving, burdened by rising food prices, unaffordable electricity, fuel hikes and worsening unemployment and poverty.

The party also pointed to electricity prices having surged by over 25% in the last two years.

“Unemployment currently stands at 42% overall, with a staggering 60% among the youth, and more than 23-million people are uncertain of where their next meal will come from. Rather than offering relief, the Ramaphosa regime, together with its white coalition partners, has chosen to push our people further into poverty to serve the interests of big business and foreign capital,” he said.

Ndhlela said the decision to increase VAT was unnecessary, especially since his party provided “clear and practical alternatives” that would have spared the poor and working-class “additional suffering”.

He said government must strengthen the South African Revenue Service to recover money lost through tax fraud, leaks, and illicit financial flows, that a wealth tax must be introduced to ensure the richest pay their “fair share”, and that company income tax must be upped to redistribute wealth and fund essential services.