Cape Town — Following the conclusion of the Budget Speech on Wednesday, Minister Khumbudzo Ntshavheni said the Democratic Alliance’s (DA) opposition to VAT increases is for personal gain.
The Budget Speech was postponed until 12 March for the first time in South Africa’s democratic history after the parties in the Government of National Unity (GNU) failed to agree on the proposed 2% VAT hike,
Finance Minister Enoch Godongwana presented a revised budget and the new version saw a 1% VAT hike to 16% by the 2026/27 financial year, starting with a 0.5% hike for the 2025/2026 financial year.
This received negative backlash from the DA, who said it would not support the hike in any way.
“The DA made it clear to the ANC in the GNU that we would not support any increase in taxes, unless those increases were temporary, and the ANC agreed to a series of major reforms that would grow the economy, create jobs, reduce waste and bring down taxes within 3 years,” the DA said.
🚨 The DA is against the ANC’s VAT Budget. A VAT hike will make South Africans poorer and threaten the SA’s future.
We cannot, in good conscience, support a Budget that fails to create jobs and grow the economy.
📺 Watch our full response: https://t.co/cFthUYSXVZ#NoToVATIncrease pic.twitter.com/EOEBhEqpXW
— Democratic Alliance (@Our_DA) March 12, 2025
Minister in the Presidency Khumbudzo Ntshavheni has responded to the claims by the DA and claimed the DA was playing political games.
“The demand by the DA as articulated by their leader John Steenhuisen after the post-cabinet briefing indicates that their issue with VAT has nothing to do with their interest in protecting the poor; they are interested in making sure we don’t achieve the transformation gains the party has set its sights to. It’s about politics,” she said.
She added that the party had an issue with the BELA and NHI Act and claimed the party wanted to reverse those gains.
“South Africans should not be fooled that when the DA says they are opposing a VAT increase. No, everyone had signed on to the VAT increase,” she said.
“Now the DA wants to hold the country ransom and wants to reverse the gains of the Expropriation Act that was fundamental to the struggle for a free South Africa,” she added.
She said the DA was aware that the implementation of the Expropriation Act would abide by the principles of the Constitution.
WATCH BELOW:
[WATCH] Minister in the Presidency Khumbudzo Ntshavheni puts in perspective the DA’s opposition to the budget that was tabled yesterday.#Newzroom405 pic.twitter.com/1vAlqG8Z7o
— Newzroom Afrika (@Newzroom405) March 13, 2025
Follow African Insider on Facebook, Twitter and Instagram
Picture: X/@GovernmentZA
For more African news, visit Africaninsider.com
Compiled by Matthew Petersen
