Cape Town – The Democratic Alliance (DA) is firmly opposed to a proposed increase in the Value-Added Tax (VAT) rate from 15% to 17%, urging instead for government spending cuts.
The DA, alongside other political parties, voiced its objection to Finance Minister Enoch Godongwana’s proposal, leading to the historic delay of South Africa’s budget, which was initially set for last month but is now scheduled for March 12.
Reaports on Sunday indicated that the ANC is considering turning to the EFF for support in passing Godongwana’s budget.
The DA claims credit for blocking a proposed 2% VAT hike, while Treasury has suggested a 0.75% compromise, The Citizen said on Sunday, citing Sunday Times.
The ANC is reportedly frustrated with the DA’s opposition, accusing them of politicising the issue.
DA finance spokesperson Dr Mark Burke on Sunday criticised the VAT hike, arguing it would further burden South Africans already struggling financially.
He described the government’s push for the increase as reckless, accusing the ANC of risking the country’s economic stability to implement the unpopular tax change.
“It is a shame that the ANC is willing to risk South Africa’s economic stability in a desperate attempt to force a tone-deaf 0.75% VAT increase down the throats of South Africans.
“Just as the ANC refused to listen to objections from its coalition partners in the lead-up to its failed February Budget, the ANC now refuses to cut the fat. Instead, the formerly ‘pro-poor’ ANC continues with its campaign to increase VAT. This when we all know that resilient South Africans across the board are stretched to breaking point,” said Burke in a statement.
Burke emphasised that the issue is not a lack of revenue but rather inefficiency within government, pointing to areas of poor performance that could be cut to reduce spending.
He rejected the ANC’s threat to seek the Economic Freedom Fighters’ (EFF) support to pass the budget, calling it irresponsible and harmful to the economy.
“The DA refuses to be held hostage or intimidated by the ANC’s blatant threat to approach the EFF to pass this VAT-based budget. This is not responsible or collaborative governance — it is reckless and places further strain on the economy.”
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