Democratic Alliance Celebrates VAT Hike Reversal, Political Parties Maintain It Wasn’t DA Alone

• The Democratic Alliance (DA) celebrated the scrapping of the Finance Minister's decision to scrap the Value-Added Tax hike
• The DA believes its legal challenge pressured Enoch Godongwana, but other political parties didn't agree with the sentiment
• Other political parties slammed the DA's assertions, maintaining that it was a joint effort to reject the VAT proposal
• ActionSA's Thoko Mashiane spoke to Briefly News about his party's role in objecting to the 0,5% VAT hike

Briefly News journalist Byron Pillay has dedicated a decade to reporting on the South African political landscape, crime, and social issues. He spent 10 years working for the Northern Natal Courier before transitioning to online journalism.

GAUTENG – The Value-Added Tax hike may officially be a thing of the past but the politics surrounding it has only started.

With Finance Minister Enoch Godongwana announcing that he would reverse the decision to implement the 0.5% hike, political parties started to celebrate the news, but many were annoyed with the Democratic Alliance’s (DA) claims.

The DA, which objected to the from the beginning, celebrated the scrapping of the increase as a victory, but not everyone saw it that way.

Political parties unimpressed with DA’s claims

With the DA taking to X (formerly Twitter) to celebrate the decision, other political parties weighed in on the decision.

The DA claimed victory for the reversal, attributing it to the pressure it had exerted on the minister was the reason. The DA and the Economic Freedom Fighters (EFF) approached the Western Cape High Court to have the budget declared unlawful, but the minister withdrew the VAT hike before the court made a ruling.

With the party believing that its legal challenge made the difference, other parties criticised John Steenhuisen’s party.

African National Congress (ANC) Secretary-General, Fikile Mbalula, maintain that it wasn’t down to one party.

"This is a process that required conversations among us, and I wish to state that the ANC and all these political parties agreed to pursue alternatives to funding the budget," he said.

Patriotic Alliance (PA) deputy leader Kenny Kunene also had scathing words for the party.

"A party of extortionists has failed to serve South Africans on an important matter of national interest. So, South Africans, don’t be misled," he claimed.

ActionSA also pointed out that ending the VAT increase was due to collective effort.

ActionSA weighs in on scrapping of VAT hike

Speaking to Briefly News, Thoko Mashiane, ActionSA’s Mpumalanga Provincial Chairperson, welcomed the reversal, saying it was a step in the right direction and a victory for ordinary South Africans.

“Increasing VAT would have placed an even heavier financial strain on low-income households and the working class, making basic necessities further out of reach. This decision shows that the government can listen when enough pressure is applied, and we commend all those who stood against the proposal,” he said.

Mashiane also added that while ActionSA played a critical role in stopping the VAT hike, it wasn’t the only one.

Herman Mashaba’s party voted in favour of the budget on condition that the minister finds an alternative to the VAT within 30 days.

“While this was a collective victory for all South Africans who made their voices heard, we are proud of the pressure we applied alongside civil society and other stakeholders to ensure the government reversed course,” Mashiane said.

What you need to know about the budget speech saga

• Julius Malema stated that the government collapsed after failing to present a budget on 19 February.
• The uMkhonto weSizwe (MK) Party threatened a national shutdown if a VAT hike was included in the budget.
• The 2025 Budget was adopted in the National Assembly on 2 April 2025 after 194 members voted in favour of it.
• The EFF filed papers in court to challenge the legality of the budget adopted by Parliament.
• The ANC Youth League wants DA ministers to be removed from their posts for voting against the budget.
• The ANC and DA sat down to discuss the future of the Government of National Unity (GNU) following divisions caused by the budget.

ANC considering scrapping VAT increase

Briefly News previously reported that the ANC met with the DA to discuss a way forward regarding the budget.

The DA voted against the proposed VAT increase in the budget, and even took the matter to court to stop it.

A senior ANC member admitted that the party may have to abandon the proposed hike as the party failed to earn the support for it.

Source: Briefly News