DA leader John Steenhuisen has declared that his party will not support the national budget or any increase in Value Added Tax (VAT) unless such measures are introduced on a temporary basis. Steenhuisen made the announcement during a media briefing on the sidelines of the 2025 Budget Speech on Wednesday, accusing the ANC of refusing to implement reforms that could stimulate economic growth, create jobs, reduce wasteful spending, and lower taxes within three years.
“Instead, they insisted on two likely permanent VAT increases, which cumulatively will raise VAT by 1% over the next two years,” Steenhuisen said. He warned that such measures would further impoverish South Africans and could spark public opposition, potentially leading to protests.
Finance Minister Enoch Godongwana delivered the highly anticipated Budget Speech in Cape Town on Wednesday after two weeks of delays and intense negotiations. In his address, Godongwana announced a 0.5% VAT increase for the 2025/2026 financial year, followed by another 0.5% hike in 2026/2027, raising the VAT rate to 16%.
Steenhuisen criticized the ANC for its inability to accept its electoral defeat and its reluctance to share power within the Government of National Unity (GNU). “It is deeply unfortunate that the ANC is prepared to sacrifice the South African people and risk the economic future of the country rather than accept it no longer has majority support,” he said.
He emphasized that the DA would not endorse the ANC’s budget, stating, “The ANC VAT budget doesn’t have a majority, and the DA won’t give it one. It is now up to the ANC to fix the mess it has created.”
Meanwhile, the Economic Freedom Fighters (EFF) have extended an invitation to the DA to join them on the opposition benches to discuss alternative proposals for the budget.
The budget debate highlights the ongoing tensions within the GNU, with opposition parties pushing back against the ANC’s fiscal policies, which they argue will place an additional burden on already struggling South Africans.
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