DA unmoved by ANC threat to approach EFF over VAT

The Democratic Alliance (DA) says it is a shame that the African National Congress (ANC) is willing to risk South Africa’s economic stability in a desperate attempt to force a tone-deaf 0.75% VAT increase down the throats of South Africans by lobbying the Economic Freedom Fighters (EFF) to pass the 2025/2026 budget.

Finance Minister Enoch Godongwana was set to table the budget in Cape Town on Wednesday, 19 February, which would have been the first under the Government of National Unity (GNU). However, it was postponed on the 11th hour over the proposed Value Added Tax (VAT) increase.

DA ACCUSES ANC OF LOBBYING EFF TO PASS VAT-BASED BUDGET

As previously reported, the Value Added Tax (VAT) currently 15% was set to increase by two percentage points to 17% and this has unsettled some parties in the GNU, especially the DA.

Following uproar over the proposed increase, which will inarguably worsen the situation for South Africans who are already financially stretched due to the high cost of living, DA spokesperson on Finance Mark Burke has alleged that the ANC insists on its campaign to increase VAT.

Burke said the Blue Party refuses to be held hostage or intimidated by the ANC’s blatant threat to approach the EFF which is not part of the GNU to pass the budget.

“This is not responsible or collaborative governance—it is reckless and places further strain on the economy. In contrast to the ANC, the DA continues to advocate for credible pro-growth, pro-jobs and actual alternatives that focus on efficiency. We can do this by spending smarter and capacitating SARS, rather than raising taxes on a struggling economy,” Burke said.

Further, Burke said government inefficiency is not hard to find or eliminate. National Treasury is already aware of many areas.

“In the 2020 Supplemental Budget to address a national emergency, Treasury temporarily stopped allocating resources to programmes with a history of poor performance. Contrary to the ANC’s false narrative, we don’t have a revenue problem, it’s a problem of political will,” he said.

DO YOU SUPPORT THE ANC’S DECISION TO INCREASE VAT IN ORDER TO INCREASE REVENUE?

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