The Democratic Alliance insists on opposing any VAT increases proposed in the national budget, a position which has hit the Government of National Unity with severe turbulence.

The national budget which has become the point of contention among political parties, proposes a 0.5 percent value-added tax (VAT) increase from May.

On Tuesday morning, while entering Parliament's Finance Committee meeting at the National Assembly in Cape Town, DA Member of Parliament and spokesperson on finance, Dr Mark Burke told reporters that his party continues to oppose VAT increase.

“The DA has proposed, and various junctures, and across two attempts at the budget - the proposals that do not punish South Africans with more taxes. While we have been open-minded, and we have taken a posture of collaboration with our partner, the ANC has failed to agree to the reforms we need to get the economy going,” said Burke.

“If we get the economy going, our revenue increases over time so that we do not need to increase taxes. Because of this refusal from the ANC to agree to reasonable, political neutral measures, I have now been mandated to go into this committee and amend the fiscal framework such that there will be no VAT increases.”

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In February, IOL reported that South Africa’s Minister of Finance, Enoch Godongwana, was meant to deliver his much anticipated 2025 Budget Speech in Parliament, Cape Town. However, events degenerated and it was subsequently announced that Godongwana’s Budget speech was being postponed until further notice.

The initial budget speech had to be postponed after some members of the Government of National Unity (GNU) rejected it, and the revised budget is still a source of debate.

IOL also reported on Tuesday that ANC Chief Whip, Mdumiseni Ntuli said his party is confident of securing adequate consensus to pass the fiscal policy framework in the parliamentary portfolio committee on Tuesday, as well as in the sitting of Parliament on Wednesday.

Despite promising discussions, the long-standing deadlock between the ANC and DA over the national budget remains unresolved.

On Tuesday morning, just hours ahead of Parliament's Finance Committee meeting, DA leader, John Steenhuisen took to social media to announce that the ANC refused to finalise an agreement with his party on growth and spending reforms "imperilling the GNU".

IOL