DA adamant its court challenge led to VAT hike U-turn
The party’s federal council chairperson, Helen Zille, said Finance Minister Enoch Godongwana was only trying to 'save face' by claiming it was as a result of discussions between smaller parties.
DA federal council chairperson, Helen Zille, addressed a media briefing on 24 April 2025. Picture: @Our_DA/X
CAPE TOWN - The Democratic Alliance (DA) is adamant that it was its court challenge that led to the value-added tax (VAT) increase reversal because its lawyers presented a compelling case.
The party’s federal council chairperson, Helen Zille, said Finance Minister Enoch Godongwana was only trying to "save face" by claiming it was as a result of discussions between smaller parties.
Zille said on Thursday that the decision to withdraw the increase and National Treasury's out-of-court settlement offer was a major victory for the DA and for millions of South Africans.
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Political parties inside and outside the Government of National Unity (GNU) claimed the withdrawal of the VAT increase was because of their negotiations with the African National Congress (ANC) and not the DA and Economic Freedom Fighters (EFF)'s court challenge.
But Zille said it was now clear that Treasury had no choice but to reverse its decision in the face of what she called the DA's "relentless and strategic legal pressure".
"Because there’s no doubt that the minister, in trying to save face, will seek to present this as because of his discussions with the smaller parties."
Zille said the ANC, instead, deceived smaller parties because Godongwana was still defending the increase in court papers as early as Tuesday.
"The minister's own affidavit to a court, which I’ve read earlier, made it very clear that they were not going to withdraw the 0.5 percentage point VAT increase, so it was clearly a question of deceiving the smaller parties that are outside the coalition."
Zille also said they would continue with Part B of their court application in the Western Cape High Court to have the Value-Added Tax Act declared unconstitutional.