DA Files Lawsuit Against South Africa VAT Hike, Warns of Devastating Impact on Citizens

A political storm is brewing within South Africa’s Government of National Unity (GNU) after the Democratic Alliance (DA) filed a lawsuit seeking to block the recently passed Value Added Tax (VAT) increase.

The DA, South Africa’s second-largest party and a key member of the GNU, is challenging the government’s decision to raise VAT by 1 percentage point over two years—starting with a 0.5% hike scheduled to take effect on May 1. The VAT increase forms part of the 2025 fiscal framework, which narrowly passed in Parliament this week.

Helen Zille, the DA’s federal council chairperson, slammed the tax hike, saying it would “have a devastating effect on South Africans already struggling to make ends meet.” In a statement released Thursday, Zille confirmed the party’s decision to approach the courts, arguing that “a VAT increase is set to come into effect on 1 May unless it is interdicted.”

The DA’s legal challenge hinges not only on the substance of the tax increase but also on what it describes as procedural flaws in how Parliament approved the measure. The party maintains that a key committee report backing the budget was adopted improperly.

Out of 400 lawmakers, 194 voted in favor of the budget, while 182 opposed it. The ruling African National Congress (ANC), led by President Cyril Ramaphosa, secured the budget’s passage with support from smaller parties—some of which are not formal members of the GNU.

This latest clash exposes deepening cracks in the fragile GNU, which was formed after the ANC lost its outright parliamentary majority in the historic May 29, 2024 elections. The coalition brought together ideologically divergent parties, including the pro-business DA and the ANC, which has dominated South African politics since the end of apartheid.

Presidency spokesperson Vincent Magwenya criticized the DA’s stance, stating: “You cannot be part of a government whose budget you opposed.” He added that the party must now “reflect on their continued participation in the GNU.”

The DA is expected to announce its decision on whether to remain in the coalition in the coming days—a choice that could either stabilize or unravel South Africa’s already delicate political balance.

As the legal challenge proceeds, all eyes are on the Constitutional Court and the DA’s next political move. For millions of South Africans already grappling with inflation, rising unemployment, and a strained economy, the outcome of this case could determine just how much more they’ll be paying at the till in the months ahead.

{Source Big News Network}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com