Cape Town — The Democratic Alliance (DA) have launched a petition to oppose the proposed 2% increase in Value Added Tax (VAT), saying the priority should be more jobs.
The 2025 Budget Speech was postponed at the last minute and marked the first time Parliament has made such a decision in the democratic era.
Following this decision, the DA said the postponement was a victory for the people of South Africa and said the 2% increase would have broken the back of our economy.
“The postponement resulted from the DA’s resolute opposition to the ANC’s plan to hike VAT at a time when millions of South Africans are already suffering under a cost of living crisis,” DA leader, John Steenhuisen said.
He said the postponement showed the DA’s muscle within the Government of National Unity (GNU).
📺 SA needs a growing economy — NOT higher taxes! The DA calls for a budget that drives growth & job creation. We reject the proposed 2% VAT hike that will make life harder for everyone and will kill jobs.
Join the fight! Sign the petition now: https://t.co/saRH6izhkv… pic.twitter.com/8067pzYlts
— Democratic Alliance (@Our_DA) February 20, 2025
However, the party still wants to ensure that there are no new tax increases proposed when the Budget Speech takes place on 12 March 2025. The party started a petition against the proposal of any tax increases.
“Tax increases are a short-term cash grab that will make life harder for ordinary South Africans, making food, transport, and daily essentials more expensive,” the party said.
The DA proposed policies that will support businesses and grow the economy to create jobs, instead of a VAT increase.
“So please sign our petition to ‘Increase Jobs, not VAT’, so that we can show them that the people want jobs, not new taxes,” the party said.
🚨 South Africa needs more jobs, NOT more tax! We reject any national budget that doesn’t drive real economic growth for SA.
✍ Join the fight by signing the petition now: https://t.co/saRH6izhkv#NoToVATIncreases pic.twitter.com/jImWecVlza
— Democratic Alliance (@Our_DA) February 21, 2025
According to IOL, the DA’s Willie Aucamp said it was important to get society involved to show they agree with the DA on the proposed tax hike.
The 2025 Budget Speech included the aforementioned VAT hike, which would fund public sector wage increases, retain essential workers such as teachers and doctors and expand early childhood development (ECD) programmes.
Godongwana’s leaked speech allegedly said that the Treasury argued the increases were necessary to fund the wage bill for public servants.
The VAT increase was rejected by the parties within the GNU including members from the DA, AP, IFP, FF+ and PAC.
Aucamp said the petition would not affect any relations within the GNU, especially with the ANC.
“No at all, it would not affect the GNU relations because we are a matured coalition that can voice our concerns. Being in a coalition does not mean that we cannot stand by what we believe in. Nobody can complain when we involve the public,” he said.
The petition needs 80 000 signatures and currently stands at over 6 000
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Compiled by Matthew Petersen