DA leader John Steenhuisen has told the ANC in the Government of National Unity (GNU) that his party will not support the national budget and any increase in the Value Added Tax (VAT) unless they were temporarily introduced.
Speaking to the media on the sidelines of the 2025 Budget Speech on Wednesday, Steenhuisen said the ANC refused to agree to the reforms that would grow the economy, create jobs, reduce waste, and bring down taxes within three years.
“Instead, they insisted on two likely permanent VAT increases, which cumulatively will increase VAT by 1% over the next two years,” he added.
He said this would see South Africans become poorer, adding that the government might be at risk of opposition being taken to the streets.
Finance Minister Enoch Godongwana finally presented his Budget Speech in Cape Town on Wednesday after two weeks of postponement and negotiations.
Godongwana announced a 0.5% VAT increase in the 2025/2026 and another 0.5 % increase for the 2026/2027 financial years. This brings the Value Added Tax (VAT) to 16%.
According to Steenhuisen, the ANC was struggling to accept the fact that it failed to win the elections and could not bring itself to share power.
“It is deeply unfortunate that the ANC is prepared to sacrifice the South African people and risk the economic future of the country rather than accept it no longer has majority support,” he said.
“The ANC VAT budget doesn’t have a majority, and the DA won’t give it one. It is now up to the ANC to fix the mess it has created.”
Meanwhile, the Economic Freedom Fighters (EFF) have invited the DA to the opposition benches to discuss what the budget should look like.
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