Democratic Alliance refuses to support a budget that includes a VAT increase
The DA has slammed the revised budget as a missed opportunity for the finance minister to be bold and decisive with the public purse.
Democratic Alliance (DA) flag. Picture: X/@DA_Gauteng
CAPE TOWN - All partners in the Government of National Unity (GNU) could again not reach consensus on a revised budget.
Finance Minister Enoch Godongwana tabled an amended fiscal framework in Parliament on Wednesday.
But the Democratic Alliance (DA) said that it can't support a budget that includes a VAT increase.
South Africans will be taxed one percentage point more for goods and services over the next two years - raising the VAT rate to 16 % by next year.
The DA has slammed the revised budget as a missed opportunity for the finance minister to be bold and decisive with the public purse.
“We are in this government for growth and jobs. If we are not going to take the bold the decisions that go hard for growth and jobs then we won't lend our vote to budgets that don't speak to that.”
Treasury has compromised on it’s initial 2 percentage point VAT hike to one percentage point over two years.
But DA Leader John Steenhuisen said that in its current form, government's spending plan doesn’t consider everyone.
“This budget will harm poorer South Africans and the middle class by increasing VAT and the personal income tax and those things could have been negotiated.”
Despite the ongoing impasse, the party believes that there is still time to reach consensus before the first of the budget bills is voted on next month.
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