By Zukile Majova
- The DA says its fight in Parliament and the courts forced Treasury to drop the VAT hike.
- The ANC may now reshuffle the unity government to bring in parties that backed the budget.
The Democratic Alliance says it has shown who’s really in charge after Finance Minister Enoch Godongwana scrapped plans to raise VAT.
In a late-night U-turn, Godongwana said Treasury would no longer increase VAT by 0.5% on 1 May as planned. The rate will remain at 15%.
But he warned that the decision will blow a R75-billion hole in the national budget over the next three years.
The DA launched its fight in February when it refused to support Godongwana’s budget. The minister had insisted VAT would rise by 0.5% each year for two years.
The party hit back hard, refusing to back the budget and daring the ANC to kick it out of the unity government.
This week, the Cape High Court reserved judgment in the DA’s case challenging the minister’s powers and aiming to stop the VAT increase in the 2025 budget.
DA Federal Executive chairperson Helen Zille said Treasury lawyers had asked for an out-of-court deal. “We have the numbers in Parliament, and we have the muscle in courts. This is a victory for all South Africans,” she said.
DA leader John Steenhuisen added: “After the DA’s opposition to VAT in Cabinet, Parliament and the court, Treasury had no choice but to reverse its VAT hike decision. Our decisive court action has delivered its intended result.”
He said the next step is to push for a full spending review to cut waste and improve funding for services like health and education.
The education budget has already been slashed, with a R30-billion shortfall that has forced schools to hire fewer teachers.
This week, members of the South African Democratic Teachers’ Union marched to the National Treasury demanding more funding for public schools.
Meanwhile, the ANC is expected to reshuffle the unity government to include ActionSA, Build One South Africa, and Rise Mzansi — all of whom supported the budget.
Pictured above: Helen Zille.
Image source: File
