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EFF, DA or Action SA, who does mzansi have to thank for the reversal of the proposed VAT hike?

1y By Nomonde Simelane

After what felt like a never-ending cycle of chaos, South African citizens can exhale the weight of worry as Finance Minister Enoch Godongwana announced the reversal of the controversial proposed VAT hike. Between the EFF, DA and Action SA, who does mzansi have to thank for saving the day?

12 March 2025 has gone down as an unforgettable day in South Africa, as Finance Minister Enoch Godongwana presented his budget speech, where he outlined the financial framework for the upcoming fiscal year to the National Assembly. In his speech, the minister revealed that a 0.5% VAT hike would be implemented in order to “restore and replenish the funding of critical services”, according to the Treasury.

This announcement exposed division within the Government of National Unity (GNU), as some members approved the budget, while others, including the DA, EFF, MK, ATM and surprisingly FF+, blatantly opposed it, labelling the VAT hike as unconstitutional. According to these parties, implementing a VAT hike would disproportionately affect the poor and working class.

Consequently, parties such as Action SA presented an amendment to the fiscal framework, which looked to generate the funds in alternative ways that did not include exorbitantly taxing citizens. While Julius Malema’s EFF and John Steenhuisen’s DA joined forces and approached the Western Cape High Court to challenge the VAT hike, arguing that it is unlawful and citing procedural flaws in the adoption of the 2025 fiscal framework.

It appears the joint effort was not in vain, as Enoch then announced the reversal of the proposed 0.5% VAT hike, while National Treasury revealed that the minister would introduce legislation to formalise the reversal. This announcement brings a two-month battle to an end, as the ANC failed to secure support from coalition partners and opposition parties.

The announcement by the minister has had the public wondering who, or which organisation, has bagged bragging rights to take the credit for this major win for South African citizens. The battle to take the credit has already begun, as Action SA have criticised the DA for taking credit for the reversal, as they believe that Action SA made proposals and found solutions that led to the minister’s decision.

Some citizens believe that the credit deserves to go to the DA and the EFF for their efforts. These users believe that the emergency case presented by the coalition was the move that sealed the deal.

Also see: Minister Enoch Godongwana reverses proposed VAT increase

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