As budget impasse continues, DA adamant it won't accept VAT increase

CAPE TOWN - As the budget impasse continues, the Democratic Alliance (DA) is sticking to its guns that it won’t accept a value-added tax increase. 
 
Crunch talks continue behind the scenes between President Cyril Ramaphosa and DA leader, John Steenhuisen.

The Standing Committee on Finance will be hoping to adopt its report on the fiscal framework on Tuesday, that's set to be put to the vote by the National Assembly on Wednesday.
 
Despite the ANC looking to ActionSA to help shore up the votes it needs, the party said a VAT increase remains a red line for it too.
 
There are tense faces and much uncertainty as finance committee MPs entered Tuesday morning’s meeting to deal with the first phase of agreeing to the country’s first budget under a Government of National Unity (GNU).
 
After Steenhuisen's last-minute cancellation to address the media on Tuesday morning, the party’s finance committee representative, MP Mark Burke, remained emphatic that the party would not be moved on its position.
 
"While we've been open-minded, and we've taken the posture of collaboration with our partner, 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 over time so we don’t need to increase taxes."
 
Meanwhile, outside of the GNU, ActionSA's Alan Beesley said his party was willing to forego its long list of reform demands and back the budget on one condition. 
 
"The proposal we're tabling and we've said from day 1 when the budget was tabled and we stuck to our guns, is that we will not accept any tax increases, and we will support the fiscal framework if there’s no tax increase."
 
The party, however, only has six seats compared to the DA's 87.

On the sidelines of Parliament on Tuesday, ANC chairperson, Gwede Mantashe, remained confident that the tensions would not break the GNU.