Velenkosini Hlabisa, Inkatha Freedom Party (IFP) President has called for level-headed leadership and collaboration as tensions over a proposed VAT increase test the strength of South Africa’s Government of National Unity (GNU).
Amid public concern and political division, Hlabisa is appealing to coalition partners to stay focused on the shared goal of stabilizing the economy and improving the lives of citizens.
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“This is not the time for political point-scoring. South Africans want to see responsible leadership and results, not infighting,” Hlabisa said during a media briefing in Durban on Monday. “We must face our challenges together, with honesty and commitment.”
The current tension stems from Finance Minister Enoch Godongwana’s recent fiscal proposal, which includes a possible increase in value-added tax (VAT). The move is aimed at addressing growing budget deficits but has triggered pushback, particularly from the Democratic Alliance (DA), a key GNU member.
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DA Stands Firm Against VAT Increase, Warning It Hurts Low-Income Families
The DA has strongly opposed the proposed VAT hike, saying it hurts low-income families and contradicts the GNU’s promises to protect the vulnerable.
The party has taken legal steps and is pushing for alternative funding options. While acknowledging the concerns, IFP leader Velenkosini Hlabisa defended the increase as a temporary fix to South Africa’s financial strain.
The IFP backs the hike as part of a broader effort to cut waste and drive growth. Parliament has given Finance Minister Enoch Godongwana 30 days to propose alternatives. Meanwhile, DA leaders like Helen Zille have voiced frustration, though Hlabisa remains hopeful, calling for unity through dialogue.
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Cooperation Crucial for KwaZulu-Natal Stability and GNU’s Future
Hlabisa addressed concerns over national tensions affecting governance in KwaZulu-Natal (KZN), where the IFP plays a key role. He stressed the importance of prioritising service delivery and stability in the province while separating national issues.
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Experts warn that instability in KZN could damage public confidence and investor trust. Economist Litha Mkhwanazi noted that while unpopular, the VAT increase might be the most viable option to address fiscal needs. “Leadership and consistency are crucial. A united government inspires more confidence,” Mkhwanazi said.
Since the formation of the Government of National Unity (GNU), the coalition has faced various challenges, with the VAT debate becoming a major test. Political analyst Mandla Sithole believes the coalition’s response will shape public perception for years, stating, “The GNU was built on cooperation for the public good. How they handle this will define the coalition’s future.”
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30-Day Deadline Sets Tone for Future Fiscal Policies
Despite the current tensions, Hlabisa remains optimistic that unity is achievable. He believes that by remaining focused on their shared goals, GNU members can overcome their differences.
“Our people didn’t vote for conflict. They voted for better leadership, accountability, and real change. We have a responsibility to deliver on that mandate.”
With rising living costs, unemployment, and daily challenges affecting millions of South Africans, the stakes have never been higher. The outcome of the VAT debate could influence not only the direction of fiscal policy but also the public’s trust in coalition governance.
As Finance Minister Godongwana works to present viable alternatives within the 30-day window, all eyes remain on GNU leaders. Can they find a balanced path forward that supports the economy without placing undue pressure on the poor?
For Hlabisa, the answer lies in collaboration. “The path forward will be tough, but if we stay united and focused, we can weather this storm and build a better future for all South Africans.”
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