Zille defends DA's legal challenge against VAT hike, calls ActionSA proposal an 'illusion'

CAPE TOWN - Democratic Alliance (DA) federal council chairperson, Helen Zille, said that those who believed in ActionSA's proposal to stop the value-added tax (VAT) increase were "deluded".

She said that the fiscal framework as passed by Parliament on Wednesday included a VAT increase and that increase would come into effect on 1 May despite ActionSA's proposal to find alternatives in 30 days.

Zille has also defended the DA's urgent high court application to interdict the VAT increase on 1 May, saying the party had a strong case.

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She said that the DA did not want the same thing as ActionSA, despite both parties opposing the pending 0.5 percentage point VAT increase that will come into effect in just under a month.

She said if the African National Congress (ANC) did indeed make a concession that removed VAT, that did not go far enough to getting an economic plan that would grow the economy and create jobs.

Zille said that only their plan could stop the VAT hike.

"All of those people who are under the mistaken illusion that ActionSA has stopped VAT are just that, deluded."

She said that Finance Minister Enoch Godongwana violated the Constitution when he announced the VAT increase and they were left no choice but to take the legal route.

"In announcing the VAT hike in the first instance, the minister was violating the Constitution because he was announcing something that would happen whether or not it went through Parliament and that has to be changed." 

Zille said if this was found to be unconstitutional, Minister Godongwana's announcement on 12 March of the VAT hike would not be binding.