Latest news with #BudgetFiscalFramework
IOL News
27-04-2025
- Business
- IOL News
‘You voted for It, we killed It': DA torches GNU over VAT hike as political parties hit back
Democratic Alliance (DA) leader John Steenhuisen is adamant that the decision to reverse the controversial 0.5 percentage point increase in value-added tax (VAT) was a direct result of the DA's legal challenge. 'Well, I think it's very clear from the beginning that we were opposed to the VAT hike,' Steenhuisen said in an interview with eNCA on Friday. 'We made it very clear before we went into the vote in Parliament, and now all the other parties have come around to our viewpoint.' He criticised other parties for trying to take credit for the reversal. 'It's kind of like somebody setting a house on fire and then expecting credit when they throw a bucket of water on it,' he said. 'We are in this situation because those parties represented at the press conference yesterday were the perpetrators of the VAT hike. They're the ones who voted for it.' His comments come after Finance Minister Enoch Godongwana announced that the VAT rate would remain at 15%. The National Treasury said the increase, originally scheduled to take effect on May 1, was withdrawn following consultations with political parties and a review of parliamentary recommendations. Despite being part of the ANC-led Government of National Unity (GNU), the DA has had tense relations with the ruling party, especially after refusing to support the 2025 Budget Fiscal Framework that included the VAT increase. The DA, along with opposition parties such as the Economic Freedom Fighters (EFF), voted against the budget and took the matter to the Western Cape High Court. Following Godongwana's announcement, the DA quickly claimed victory. Steenhuisen insisted the change would not have occurred without the court pressure. 'If it wasn't for the court action and the dreadful day Treasury had in court, where it became clear their arguments were not gaining traction, there would have been no volte-face from the Finance Minister,' Steenhuisen said. 'The Minister of Finance had been adamant in court papers that there was no alternative to the VAT increase. What changed? It was the very real prospect of losing the case.' Meanwhile, other political parties have also claimed credit. uMkhonto weSizwe (MK) Party secretary general Floyd Shivambu told supporters outside Jacob Zuma's court hearing in Pietermaritzburg on Thursday that Jacob Zuma's party had led public resistance to the VAT increase. 'It's only the MK Party that went to the streets to reject the VAT increase,' Shivambu said. 'While others were trying to discuss VAT in court and in Parliament, it's only us who went to the ground.' Other parties, including ActionSA, Build One SA, and the Inkatha Freedom Party (IFP), said they engaged the ANC directly to find alternative solutions. Build One SA leader Mmusi Maimane praised the negotiations with the ANC, calling them key to the VAT reversal. However, on Thursday, IOL News reported that Patriotic Alliance (PA) deputy leader Kenny Kunene accused the DA of hypocrisy, slamming the party's claim of victory as dishonest. 'They woke up this morning after seeing the statement from the minister and claimed victory — that's quite hypocritical,' Kunene said during a multi-party media briefing in Sandton. He alleged that the DA attempted to use the VAT hike as leverage to push for state asset privatisation and political appointments within the GNU. 'They tried to use it to change what Parliament had already resolved,' Kunene said. 'So a party of extortionists has failed to serve South Africans on an important matter of national interest.' Kunene further claimed that the DA made demands during negotiations, offering to support the VAT hike if certain conditions were met, including the scrapping of the National Health Insurance (NHI) Bill, the Basic Education Laws Amendment (BELA) Bill, and the privatisation of a state port. 'When the extortionists could not get their way, they ran to court,' Kunene said. 'The DA has no moral authority to claim victory for the removal of the VAT increase.' IOL Politics
IOL News
25-04-2025
- Business
- IOL News
DA claims victory over VAT hike reversal amid political tensions
Democratic Alliance (DA) leader John Steenhuisen is adamant that the decision to reverse the controversial 0.5 percentage point increase in value-added tax (VAT) was a direct result of the DA's legal challenge. 'Well, I think it's very clear from the beginning that we were opposed to the VAT hike,' Steenhuisen said in an interview with eNCA on Friday. 'We made it very clear before we went into the vote in Parliament, and now all the other parties have come around to our viewpoint.' He criticised other parties for trying to take credit for the reversal. 'It's kind of like somebody setting a house on fire and then expecting credit when they throw a bucket of water on it,' he said. 'We are in this situation because those parties represented at the press conference yesterday were the perpetrators of the VAT hike. They're the ones who voted for it.' His comments come after Finance Minister Enoch Godongwana announced that the VAT rate would remain at 15%. The National Treasury said the increase, originally scheduled to take effect on May 1, was withdrawn following consultations with political parties and a review of parliamentary recommendations. Despite being part of the ANC-led Government of National Unity (GNU), the DA has had tense relations with the ruling party, especially after refusing to support the 2025 Budget Fiscal Framework that included the VAT increase. The DA, along with opposition parties such as the Economic Freedom Fighters (EFF), voted against the budget and took the matter to the Western Cape High Court. Following Godongwana's announcement, the DA quickly claimed victory. Steenhuisen insisted the change would not have occurred without the court pressure. 'If it wasn't for the court action and the dreadful day Treasury had in court, where it became clear their arguments were not gaining traction, there would have been no volte-face from the Finance Minister,' Steenhuisen said. 'The Minister of Finance had been adamant in court papers that there was no alternative to the VAT increase. What changed? It was the very real prospect of losing the case.' Meanwhile, other political parties have also claimed credit. uMkhonto weSizwe (MK) Party secretary general Floyd Shivambu told supporters outside Jacob Zuma's court hearing in Pietermaritzburg on Thursday that Jacob Zuma's party had led public resistance to the VAT increase. 'It's only the MK Party that went to the streets to reject the VAT increase,' Shivambu said. 'While others were trying to discuss VAT in court and in Parliament, it's only us who went to the ground.' Other parties, including ActionSA, Build One SA, and the Inkatha Freedom Party (IFP), said they engaged the ANC directly to find alternative solutions. Build One SA leader Mmusi Maimane praised the negotiations with the ANC, calling them key to the VAT reversal. However, on Thursday, IOL News reported that Patriotic Alliance (PA) deputy leader Kenny Kunene accused the DA of hypocrisy, slamming the party's claim of victory as dishonest. 'They woke up this morning after seeing the statement from the minister and claimed victory — that's quite hypocritical,' Kunene said during a multi-party media briefing in Sandton. He alleged that the DA attempted to use the VAT hike as leverage to push for state asset privatisation and political appointments within the GNU. 'They tried to use it to change what Parliament had already resolved,' Kunene said. 'So a party of extortionists has failed to serve South Africans on an important matter of national interest.' Kunene further claimed that the DA made demands during negotiations, offering to support the VAT hike if certain conditions were met, including the scrapping of the National Health Insurance (NHI) Bill, the Basic Education Laws Amendment (BELA) Bill, and the privatisation of a state port. 'When the extortionists could not get their way, they ran to court,' Kunene said. 'The DA has no moral authority to claim victory for the removal of the VAT increase.'
IOL News
22-04-2025
- Business
- IOL News
ANC pushes 'reset button' on GNU but DA remains... for now
African National Congress (ANC) secretary general Fikile Mbalula has slammed the Democratic Alliance (DA) for opposing the 2025 National Budget. He addressed the media on Tuesday. ANC Secretary-General Fikile Mbalula said the ANC will press the reset button on the Government of National Unity (GNU) and open talks to other parties to join. He was speaking at Luthuli House on Tuesday following crunch talks with the party's National Working Committee following the DA and FF+ voting against the Budget Fiscal Framework. However, he stopped short of kicking the DA and the FF+ out of the GNU stating that any change to the arrangement would only come from a decision of the party's National Executive Committee (NEC). 'Most of you have been asking about the future of the GNU,' Mbalula told reporters at a media briefing. 'The NEC adopted the position of the GNU and nothing has changed in relation to that.' Mbalula acknowledged that the process of navigating the national budget within the framework of the GNU has introduced new complexities and required extensive consultation, unlike in previous administrations where the ANC held a clear majority. 'We've entered uncharted waters. There was never such a laborious, elaborate process of consultation on budget issues before,' he said. 'But now, because we are in a GNU and have lost the majority in government, it's important that budget engagements happen earlier and more comprehensively.' One of the contentious issues, Mbalula noted, is the proposed increase in Value Added Tax (VAT), which has sparked public concern and opposition within the GNU. 'Nobody enjoys the raising of taxes. But governments, including ours, need to generate resources to serve the people,' he said. Despite the challenges, Mbalula struck a defiant tone, saying the ANC remains committed to its mission of building 'a democratic, non-racial, non-sexist, united, and prosperous South Africa.' 'The struggle continues,' he concluded. 'The people's movement will not retreat.' On Tuesday, IOL reported that the mission to boot out the Democratic Alliance (DA) from the Government of National Unity (GNU) has been put on ice by the ANC's National Working Committee (NWC), ordering the party to revisit consultations with its partners. This included parties outside the GNU that helped the ANC to pass the 2025 National Budget. According to ANC insiders, the move meant that a Cabinet reconfiguration was possible. Despite this, the ANC members, particularly the parliamentary caucus, demanded action against the DA ministers after they rejected the budget over the VAT increases. Tensions between the two leading parties in the GNU, ANC and the DA, escalated last week after Parliament passed the budget.
