Cape Town – Democratic Alliance (DA) leader John Steenhuisen has claimed that the reversal of the proposed 0.5 percentage point VAT increase was a direct result of the DA’s legal challenge against the move.
Speaking to eNCA, Steenhuisen criticised other political parties for taking credit, arguing that they had initially supported the hike.
“Well, I think that it’s very clear from the beginning that we were opposed to the VAT hike,” Steenhuisen said.
“We made it very clear before we went into the vote in Parliament, and now all the other parties have come around to our viewpoint on the matter that we shouldn’t have VAT.”
He added: “I do find it odd that they would want to take credit for it. It’s kind of like somebody setting a house on fire and then expecting credit when they throw a bucket of water on it,” he said.
“We are in this situation because those parties represented at the press conference yesterday were the perpetrators of the VAT hike in South Africa. They’re the ones who voted for it.”
DA leader, John Steenhuisen, is adamant that the decision to reverse the VAT increase is as a result of DA taking the matter to court. #VATIncrease pic.twitter.com/jrnGKiX23g
— eNCA (@eNCA) April 25, 2025
Finance Minister Enoch Godongwana announced that the VAT would remain at 15%, citing consultations and parliamentary recommendations.
Despite being part of the ANC-led Government of National Unity (GNU), the DA had opposed the budget framework that included the VAT hike and took the matter to the Western Cape High Court.
Steenhuisen said the court action exposed Treasury’s weak case and forced the reversal.
“If it wasn’t for the court action and the dreadful day that Treasury had in court, where it was very clear that their arguments were not finding favour that suddenly there was avolte-face by the Finance Minister… because if you look at the court papers as well, all the way into the court arguments, the minister of finance was saying there is no alternative to a VAT increase, it must go ahead. What precipitated the change? It was the fact that there was a prospect of losing in that case, which now seems likely,” he said.
Other parties, including the MK Party, ActionSA, Build One SA, and the IFP, also claimed credit for the policy U-turn through protests, negotiations, or lobbying.
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Compiled by Betha Madhomu
