DA fires back at ActionSA as a row over looming VAT increase continues
This week, ActionSA published a parliamentary reply from the DA claiming the party knew about the proposal to increase VAT ahead of the aborted February budget.
Agriculture Minister John Steenhuisen, deputy minister Nokuzola Capa, KZN Premier Thami NtThis week, ActionSA published a parliamentary reply from the DA claiming the party knew about the proposal to increase VAT ahead of the aborted February budget.li and eThekwini Deputy Mayor Zandile Myeni at the G20 meetings on 23 April 2025, in Durban. Picture: Nokukhanya Mntambo/EWN
JOHANNESBURG - The Democratic Alliance (DA) has fired back at what it says are attempts by ActionSA to deflect culpability as a row continues between political parties over the looming value-added tax ( VAT) increase.
This week, ActionSA published a parliamentary reply from the DA claiming the party knew about the proposal to increase VAT ahead of the aborted February budget.
By being privy to budget consultations and other processes, ActionSA claimed the DA was also complicit.
However, the DA has publicly opposed any increases to the standard rate, tipping over the initial budget announcement in protest.
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The DA has also taken the matter to court, saying parliament’s adoption of the budget fiscal framework and processes to hike VAT were flawed and unconstitutional.
The party believes Finance Minister Enoch Godongwana acted unlawfully, and Parliament should have decided on the VAT increase instead of the minister.
Speaking on the sidelines of G20 meetings in Durban, Agriculture Minister John Steenhuisen described ActionSA’s latest move as a gimmick.
“What ActionSA are desperately trying to do is have a rear-guard action after having been exposed as being played like a cheap guitar by the ANC [African National Congress] during this process.
"It’s very clear that they were hoodwinked into thinking they were going to stop the VAT increase when it’s very clear from the finance minister’s very own papers before court that what they were promised was never going to materialise. They’ve been played.”
With some conditions, ActionSA is among the smaller parties that aided the ANC to get the fiscal framework over the line.
ActionSA had proposed that the fiscal framework and revenue proposals report be adopted with an amendment to remove VAT and the personal income tax bracket creep. And yet VAT is set to increase to 15,5% on 1 May.
The Western Cape Division of the High Court is expected to rule on the DA’s application to halt the increase ahead of the implementation date.
In addition to claims that processes were flouted, the DA also argues that higher VAT will hurt all South Africans and cause food inflation.