‘ANC has chosen to push this VAT increase down the throats of South Africans’

The DA says it is confident in its court challenge of the 2025 budget, claiming that the framework passed by Parliament earlier this month shows its coalition partner, the ANC, does not care about the poor.

The party and the EFF have both filed applications at the Western Cape High Court to interdict the budget.

The parties want to prevent the implementation of a Value-Added Tax (VAT) increase from 1 May. They have also questioned the procedures which led to the passing of the budget.

The DA is challenging the Minister of Finance, Enoch Godongwana’s, ability to propose a VAT increase for the majority of South Africans.

Court case a waste of time?

Speaking to The Citizen on Tuesday, DA spokesperson on finance Dr Mark Burke said its government of national unity (GNU) partner, the ANC was forcing the budget on the country.

“The ANC has chosen to push this VAT increase down the throats of South Africans, and it has sought support outside of the partnership for this increase.

“If we’re criticised for protecting South Africans from a VAT increase that is anti-poor and potentially unconstitutional, then that is a critique we’re happy to bear.”

ActionSA assisted the ANC in passing the current budget, but said this was conditional on the VAT increase being scrapped and an alternative source of funding secured instead. That guarantee looks increasingly unlikely to be given as banks, retailers, and other businesses prepare for the increase from next month.

Burke’s said this preparation was not a sign that the court battle was a waste of time.

” We would not be approaching the court if we did not have reason to be optimistic about our chances of success.

“Businesses have a duty to prepare for the worst-case scenarios, and they are acting according to that duty.

“We have a duty to prevent the worst possible scenario, and this court case is one of the measures we’re following in pursuit of that objective.”

‘Just politics’?

The case has also been waved away as mere political opportunism, which Burke’s denies.

“The court case concerns a crucial meeting of one of the key committees in Parliament and how it was run in a shambolic and potentially undemocratic manner.

“It also concerns whether the Minister can simply implement a VAT increase by decree, thereby undermining the basic democratic principle of no taxation without representation.

“Given the importance of these issues to our democracy, it’s deeply unfair to characterise them as ‘just politics.’”

DA Chief Whip in Parliament, George Michalakis, told supporters outside of court that the budget will negatively affect economic growth and the poor. He said it will also hinder the country’s ability to create more jobs.

“If we increase taxes of any kind at this point, everyone will suffer, and the poor will suffer first. If we borrow more, the economy will slow down, and everyone will suffer, with the poor suffering the most.

“We have to find other ways of funding our schools and our hospitals, and it starts with the culture of wasting money. We need to cut wasteful spending and review how we spend money and on what. We need to make sure that the way we spend money focuses on two things: growing the economy and creating jobs,” he said.

ALSO READ: NHI and VAT: What the DA demanded in budget talks

ANC violating GNU priorities?

DA federal chairperson Dr Ivan Meyer said the VAT increase to 15.5% violates the GNU’s vision and the statement of intent that all member parties signed.

“A VAT increase is a sign that the ANC does not care about the people. A VAT increase is a sign that we have a government that is out of touch with the people.

“The GNU has three priorities, to create inclusive economic growth, a VAT increase will erode inclusive economic growth, the second priority of the GNU is to reduce poverty, this VAT increase will increase poverty, the third priority is to build a capable state, but a capable state never punishes the poor,” he said.

ActionSA said this week that the DA was complicit in the increase because of its membership in the GNU.

However, Meyer predicted that smaller parties that assisted the ANC earlier this month will be punished by voters.

“They must take responsibility because they voted with the ANC to increase the VAT, and voters will punish them,” he said.

ALSO READ: The DA can walk away from GNU, says Mbalula

Is the DA being a difficult GNU partner?

Political analyst Sanet Solomon said that GNU partners should come up with alternative ways of resolving their differences before resorting to the courts.

“It is unsustainable for the GNU to continue functioning effectively if the coalition partners continue to utilise the judiciary as a tool to settle differences.

“Hence, the country has a clear division of powers between its executive, judiciary and legislature,” she said.

Solomon described the GNU as “fragile”.

“The GNU is in a fragile state given the number of disagreements and clashes they (the DA and the ANC) have had over the past few months.

“Their opposing interests and priorities have been highlighted on a range of issues such as the BELA Act, the Expropriation Act, and more recently the budget,” she said.