South Africans deserve a budget that makes sense – DA

The DA says it made it clear from the onset that under no circumstances does it believe there should be a budget framework that has a VAT hike.

Briefing the media on Tuesday morning, DA national spokesperson Karabo Khakhau said South Africans were already battling to put food on the table and were digging deeper into pockets that were “leaking”.

She said it was on that basis that over the conversation period, the DA had tabled an alternative to cover the 60% shortfall without taxing citizens.

“We have also been in conversations with our coalition partners in the GNU [government of national unity], which is the ANC, to make sure we conclude that rest in the best interest of South Africans. That conversation is yet to be concluded. We are not done yet. South Africans still deserve a budget that makes sense. A budget that at its heart puts the interest of South Africans forward and those interests are economic growth, job creation and poverty alleviation and bridging the gap between the rich and the poor.”

Finance minister Enoch Godongwana has been facing an uphill battle to secure political support for the budget.

This is despite a climb down from the initial two percentage point increase proposed in February. He had proposed that a 0.5 percentage point increase to be implemented from May and another half a percentage point increase effected in April next year.

Earlier, DA leader John Steenhuisen expressed his frustration on X, saying: “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”.

DA finance spokesperson Mark Burke said he had been mandated to go into Tuesday's budget committee to amend the fiscal such that there would be no VAT increases.

He said the DA had proposed alternatives 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 partners, the ANC has failed to agree to the reforms that we need to get the economy going and if we get the economy going for our revenue to increase overtime so that we don't need to increase taxes and 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 to amend the fiscal such that there would be no VAT increases.”

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