IN CONVERSATION WITH ROGER SOLOMONS, Build One South Africa (BOSA) spokesperson
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Build One South Africa (BOSA) leader, Mmusi Maimane, has outlined his party’s stance on the country's fiscal crisis, stressing that the budget impasse goes far beyond a potential VAT increase.
Maimane made it clear that while the proposed VAT increase was a symptom of a deeper crisis, the real issue lies in a government "lacking unity of direction," incapable of stimulating economic growth, and struggling with corruption.
"South Africa is in this fiscal hole because this government is lacking unity of direction, unable to grow the economy or create jobs at the scale required," he said.
He warned that unless this fundamental issue is addressed, the country would face another fiscal shortfall next year, with government scrambling for cash.
Prior to a scheduled meeting with all parties that supported the fiscal framework, BOSA outlined its position.
Maimane outlined BOSA’s practical and responsible approach to the fiscal crisis, including support for the budget, but with clear, non-negotiable conditions.
“If the proposed VAT increase is not reversed, then our support for the budget will be withdrawn,” he said, adding that their support was never a "blank cheque."
BOSA is now proposing a series of actionable measures to raise funds and avoid the VAT increase.
Maimane detailed proposals to save over R180 billion, focusing on both immediate and medium-term solutions.
Among the suggestions are a phased increase in National Empowerment Fund (NEF) spending, a 6% sin tax on online gambling, and the elimination of the Employment Tax Incentive.
In the medium term, BOSA advocates for freezes in government hiring, cuts to bailouts for state-owned enterprises, and a rationalisation of diplomatic missions, among other measures.
Maimane stressed that the issue is not a tax problem but a governance problem. “South Africa doesn’t have a tax problem. It has a governance problem. And we will not allow struggling South Africans to pay the price for elite mismanagement by the GNU,” he said.
With these proposals, BOSA aims to work with all parties committed to a growth-oriented, inclusive budget.
Maimane made it clear that while the proposed VAT increase was a symptom of a deeper crisis, the real issue lies in a government "lacking unity of direction," incapable of stimulating economic growth, and struggling with corruption.
"South Africa is in this fiscal hole because this government is lacking unity of direction, unable to grow the economy or create jobs at the scale required," he said.
He warned that unless this fundamental issue is addressed, the country would face another fiscal shortfall next year, with government scrambling for cash.
Prior to a scheduled meeting with all parties that supported the fiscal framework, BOSA outlined its position.
Maimane outlined BOSA’s practical and responsible approach to the fiscal crisis, including support for the budget, but with clear, non-negotiable conditions.
“If the proposed VAT increase is not reversed, then our support for the budget will be withdrawn,” he said, adding that their support was never a "blank cheque."
BOSA is now proposing a series of actionable measures to raise funds and avoid the VAT increase.
Maimane detailed proposals to save over R180 billion, focusing on both immediate and medium-term solutions.
Among the suggestions are a phased increase in National Empowerment Fund (NEF) spending, a 6% sin tax on online gambling, and the elimination of the Employment Tax Incentive.
In the medium term, BOSA advocates for freezes in government hiring, cuts to bailouts for state-owned enterprises, and a rationalisation of diplomatic missions, among other measures.
Maimane stressed that the issue is not a tax problem but a governance problem. “South Africa doesn’t have a tax problem. It has a governance problem. And we will not allow struggling South Africans to pay the price for elite mismanagement by the GNU,” he said.
With these proposals, BOSA aims to work with all parties committed to a growth-oriented, inclusive budget.