DA federal chairperson says the decision to hike VAT is unjust and will severely impact those already facing financial difficulties, which is why the DA is challenging it in court.
Image: Armand Hough/Independent Newspapers
THE DA will forge ahead with its court action over the passing of the fiscal framework and revenue proposals, despite holding “constructive” discussions with its coalition partner, the ANC, at the weekend to iron out their differences which threaten the future of the Government of National Unity (GNU)
"We have not decided to drop the court action on the VAT case," said DA Federal Chairperson Helen Zille.
The DA's court action centres around the party's opposition to the 0.5 percentage point VAT hike, which they believe will have a negative impact on the economy.
The application before the Western Cape High Court challenges the adoption of the 2025 Fiscal Framework and Revenue Proposals, which include the VAT hike.
The party claims that the decisions taken by the National Assembly and National Council of Provinces (NCOP) were "fundamentally flawed" and "unlawful."
"The VAT hike is a regressive tax that will hurt the poor and vulnerable the most," the DA wrote in its court papers.
While the DA voted against the Budget, specifically the VAT hike, the ANC was helped to get it passed thanks to other parties in and outside of the GNU.
Following their meeting at the weekend, the parties presented a united front, saying that their behind the scenes discussions were constructive.
In a statement, the ANC said: “The meeting forms part of the ANC’s unwavering commitment to the principles of dialogue, nation-building, and collective leadership in addressing the urgent socio-economic needs of our people.
"At the centre of these engagements is the future of our country – South Africa – and the responsibility we all carry to ensure it remains united, stable, and focused on development…The ANC entered the GNU process with clear intentions: to build a broad-based consensus on rebuilding the country, accelerating service delivery, creating jobs, and tackling inequality. These goals are not negotiable.”
Zille said her party remained committed to finding solutions in the best interests of the people of South Africa, both in relation to the budget and to strengthen the GNU.
“The engagement took place in a constructive atmosphere, with both sides speaking respectfully yet frankly about the need to resolve the impasse over the budget and to enhance cooperation between the two parties in the context of the GNU. The DA reiterated our position that a VAT increase is unaffordable in the absence of meaningful reform that will increase economic growth and create jobs.”
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