DA’s rejection of Budget a power play beyond VAT hike – Godongwana

Cape Town – Finance Minister Enoch Godongwana has reportedly accused the Democratic Alliance (DA) of using its rejection of the budget to pressure President Cyril Ramaphosa into making concessions on issues beyond the scope of the budget.

This comes after DA leader John Steenhuisen rejected the budget, despite the Treasury scaling back its original proposal for a 2% VAT increase to 0.5%.

“We’ve been very clear from the beginning that we don’t believe that a VAT increase is the right way to proceed, espceciall if it is not accompanied by bold economic reforms… this budget is going to harm poor South Africans and the middle class,” Steenhuisen said.

[WATCH] DA leader John Steenhuisen responds to the Budget Speech: “We’ve been very clear from the beginning that we don’t believe that a VAT increase is the right way to proceed,” adding that “this budget is going to harm poor South Africans and the middle class.” pic.twitter.com/NLceP7OXGP

— SABC News (@SABCNews) March 12, 2025

According to EWN, Godongwana suggested that the DA’s objections were not solely about the VAT hike but were linked to previous losses on key issues such as the Basic Education Laws Amendment Act, National Health Insurance, and the Expropriation Act.

He also stated that the DA’s rejection was part of a broader strategy to secure victories on other matters outside the budget’s purview.

“Is their problem the tax, or is their problem something else? It’s important to call a spade a spade. I personally met the DA on the seventh despite the fact that they say they have not been consulted.