Cape Town – DA leader John Steenhuisen has confirmed that disagreements over a proposed 2% VAT increase contributed to the postponement of the Budget Speech.
Finance Minister Enoch Godongwana had planned to raise VAT to 17%, but internal conflicts within the Government of National Unity (GNU) led to delays.
Steenhuisen said that the DA could not support the hike due to South Africa’s economic conditions.
Aldrin:
Was the contestation over VAT?John Steenhuisen (DA):
It was one of them. Yes we couldn’t support the 2% VAT increase. #budgetsession2025 pic.twitter.com/95lM0Ah33S— Izwe Lethu (@LandNoli) February 19, 2025
“It was obviously a key point for me if I wear my hat as the leader of my party. We couldn’t in good conscience support a 2% increase given the current economic circumstances in South Africa,” he said while speaking to the media outside Parliement on Wednesday.
The postponement of the Minister of Finance’s 2025/26 Budget Speech due to the DA’s opposition to the ANC’s VAT increase is a victory for the people of South Africa, as it prevents the implementation of a 2% VAT increase that would have broken the back of our economy. 🇿🇦 pic.twitter.com/RWwuiPSA9e
— John Steenhuisen MP (@jsteenhuisen) February 19, 2025
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Compiled by Betha Madhomu
