By Zukile Majova
- The DA decision leaves the ANC without enough support to pass the budget that includes a 1% VAT increase over two years.
- Social grants will see small increases with the old age grant rising by R130 but the child support grant going up by just R30.
The DA has rejected the budget presented by Finance Minister Enoch Godongwana.
DA leader John Steenhuisen said the party, which joined forces with the ANC to form the government of national unity, was frustrated as its contributions were being ignored by the ANC.
Feeling bullied by being excluded from decisions to sign controversial bills into law, the party took a resolution not to support the 2025/26 budget.
Most importantly, the DA rejected a proposal to increase the Value Added Tax by 0.5% this year and by another 0.5% next year.
“To raise the revenue needed, the government proposes to increase the VAT rate by half a percentage point in 2025/26 and by another half a percentage point in the following year. This will bring the VAT rate to 16% by 2026/27,” said Godongwana.
Steenhuisen said the DA was in cabinet to support efforts to grow the economy and create jobs.
“Our position is clear: more growth, less tax. More growth, less debt. More growth, less waste.”
On his social media page X, Steenhuisen said: “Good afternoon, South Africa. The DA will not support the budget in its current form. We will continue to fight for economic growth and jobs.”
DA Minister of Public Works, Dean MacPherson, said: “We are all good on this side to not support a 1% VAT increase over two years and the freeze on adjusting tax brackets for inflation which will wipe out any pay increases for the working class.”
The Finance Minister also announced plans to support the R370 SRD grant and made marginal increases to other social grants.
“The Covid-19 Social Relief of Distress (SRD), in its current form, will be extended by a year to end March 2026. R35.2 billion is allocated for this purpose.”
The budget showed small increases to social grants, with the old age grant rising by R130 to R2,315, while the child support grant will increase by just R30 to R560.
The DA joins the EFF and MK Party in rejecting the budget, putting its passage through Parliament at serious risk.
Pictured above: Enoch Godongwana.
Image source: File
