The African National Congress (ANC) and the Democratic Alliance (DA) once again failed to reach an agreement on Finance Minister Enoch Godongwana’s budget speech. With the parliamentary sitting set for this week, tensions ran high as both parties struggled to find common ground.
The DA expressed its willingness to accept a 0.5% VAT increase in exchange for the repeal of controversial laws, including the National Health Insurance (NHI), the Bela Act, and the Expropriation Act. However, the ANC flatly rejected these terms, leading to a standstill.
DA Demands Rejected, No Compromise in Sight
In a second round of negotiations, the Democratic Alliance proposed working with the ANC to formulate the country’s economic and international relations policies.
However, this offer was also swiftly turned down by the ANC, further complicating the negotiations. As talks came to an end, Democratic Alliance leader John Steenhuisen took to social media, declaring that the DA would oppose the budget.
Time is almost up. Last night, the ANC refused to finalise an agreement on growth and spending reforms, imperilling the GNU. The DA will oppose the budget unless and until a written agreement is reached.
— John Steenhuisen MP (@jsteenhuisen) April 1, 2025
Despite their insistence on no VAT increase, the DA continues to push for what they believe are measures that would benefit the people of South Africa.
They argue that increasing taxes, especially through VAT, would place an undue burden on citizens already facing economic hardship.
DA’s Response: Alternatives to Tax Increases
Speaking to the media outside Parliament, the DA’s spokesperson on finance, Mark Burke, stressed that the party had proposed several alternatives during the negotiations to avoid additional taxes on South Africans.
According to Burke, the Democratic Alliance’s approach focused on stimulating the economy, which, in turn, would generate the revenue needed to avoid tax hikes in the future.
“We’ve been open-minded and taken a collaborative approach with the ANC,” Burke stated. “However, the ANC has failed to agree on reforms that could kickstart the economy and ultimately reduce the need for higher taxes.”
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Burke emphasized that, due to the ANC’s refusal to adopt what he deemed reasonable and politically neutral reforms, the Democratic Alliance would now focus on amending the fiscal framework to ensure there is no VAT increase.
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