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, alongside Deputy Leader Nobuntu Hlazo-Webster, emphasised the need for a sustainable and responsible budget to address South Africa’s economic challenges.
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“If the proposed VAT increase is not reversed, then our support for the budget will be withdrawn,” he said, adding that their support was never a "blank cheque."
The conditions laid out by BOSA include a reversal of the VAT increase and income tax bracket creep, a full review of government expenditure, and the adoption of a national Growth Charter to boost jobs and investment.
Maimane criticised other political parties for their opposition to the budget process, some of whom sought to advance their own interests by demanding positions or control over certain sectors. “That’s not how we work. BOSA is here to build,” he said, expressing a willingness to work with any party that is serious about fixing the budget for the benefit of all South Africans.
In response to critics who have attempted to mislead the public by pinning the depreciation of the rand on local budget uncertainty, Maimane set the record straight.
"According to any credible and independent market analysis, the primary driver of the rand's decline is global volatility, not local politics," he said, referencing the global market turbulence fueled by trade tensions between the US and its trading partners.
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.
"This is not a time for political theatrics. It is a time for bold ideas and responsible leadership," urging collaboration to build a South Africa that works for everyone.''