Currently, South Africa is in a state of chaos as the powers that be decide on how to proceed regarding the VAT issue. In a surprising turn of events, the EFF and DA have banded together to challenge the proposed VAT hike in front of a judge at the Western Cape High Court.
Julius Malema’s Economic Freedom Fighters (EFF), also known as the red berets, and John Steenhuisen’s Democratic Alliance (DA) are political parties who have been on opposing sides of history for some time now, arguably since their inception, and have established a nemesis-like relationship. The decision regarding the GNU is mere example, as the EFF opted not to join on the basis that they believe it would undermine it’s principles, while the DA believed that joining would bethepatriotic thing to do.
Not too long ago, the Minister of Finance, Enoch Godongwana, announced that as part of the 2025 fiscal budget, VAT would be increasing by 0.5%, taking it up to 15.5%. This announcement garnered some mixed reactions from the GNU, as parties such as Action SA, the EFF and MK blatantly rejected and opposed this proposition, citing its negative impact on citizens.
In an effort to halt the VAT hike set to take effect on 1 May 2025, The EFF and DA have opted to join forces to approach the Western Cape High Court to present a case against Enoch’s proposed increase. The DA accuses the ANC of pushing a ‘tone-deaf’ budget that is likely to worsen the cost of living for citizens who are already strained and are struggling to make ends meet.
80K+ people have tuned in for our live stream of the DA & EFF’s challenge to the VAT hike in the WC High Court today! Hearing still going, watch here: https://t.co/KyOWAKVdra pic.twitter.com/W8fjcgDtkI
— Sizwe Mpofu-Walsh (@SizweMpofuWalsh) April 22, 2025
Spearheaded by the likes of Helen Zille and Mark Burke, the DA argues that the Finance Minister’s authority to unilaterally adjust the VAT rate under section 7(4) of the VAT Act is merely unconstitutional. Furthermore, they seek to interdict the hike, which they deem ‘anti-poor’, and prevent SARS from implementing it. The EFF on the other hand argues that the adoption of the fiscal framework violated the Money Bills and Related Matters Act. As a result, they seek to suspend the framework’s adoption, as well as the finance committee’s report.
“The Government of National Unity (GNU) has three priorities. First, create inclusive economic growth. The VAT (increase) will erode inclusive economic growth. The second priority of the GNU is to reduce poverty. This VAT increase will increase poverty. The third priority of the GNU is to build a capable state. A capable state never punishes the poor,” says DA’s Federal Chairperson, Dr Ivan Meyer.
