The ANC claims it led the charge against the VAT increase, prompting the Budget Speech being postponed.
Image: IOL graphic
While the Democratic Alliance (DA) claims to have successfully blocked the proposed 2% VAT increase, the African National Congress (ANC) says its ministers were the first to oppose the National Treasury’s proposal and others followed.
The DA leader and Agriculture Minister John Steenhuisen, was the first to claim victory and boast about how they defeated the ANC’s proposal.
The 2025/26 National Budget Speech was postponed to March 12 after Finance Minister Enoch Godongwana could not deliver it on Wednesday due to parties being at loggerheads over the budget.
According to Steenhuisen, it was the DA’s pressure that led to the postponement.
He said this was a victory for South Africans because it would have broken the back of the economy. He also blamed the ANC for this.
“The postponement resulted from the DA's resolute opposition to the ANC's plan to hike VAT at a time when millions of South Africans are already suffering under a cost of living crisis.
“The last-minute postponement came about because of the failure by the ANC, and Godongwana's failure to engage meaningfully with the alternative proposals tabled by the DA,” he said.
After the hard-fought battle, Steenhuisen said their fight will now focus on introducing a new budget that is anchored in growing the economy, rather than increasing taxes or government debt.
This is the first time that the budget speech was postponed in the history of the country.
“This historic victory demonstrates the DA's muscle within the Government of National Unity.
“For the first time ever, the ANC was prevented from tabling an anti-growth budget. Now is the time to replace a failed ANC VAT budget, with a brand-new GNU growth budget,” Steenhuisen said.
DA leader John Steenhuisen claims victory after successfully blocking the proposed VAT hike, calling it a win for South Africans struggling with the cost of living crisis.
Image: File
In a media briefing that was immediately held to explain the postponement, Presidency Minister Khumbhudzo Ntshavheni shot down the DA’s claims, saying several ANC ministers rejected the increase.
According to Ntshavheni, the ministers opposed the budget on Wednesday, hours before it could be tabled.
This led to President Cyril Ramaphosa constituting an emergency cabinet meeting to discuss the matter. Also, the DA threatened to reject the budget, had it gone through.
Ntshavheni made it clear that the DA was not the only party opposed to the VAT increase, stating that all 10 parties in the Government of National Unity (GNU) unanimously decided to postpone the budget.
“This is not a one-party issue … part of why we requested a delay as cabinet is that we want to meet and have a substantive discussion on the budget.
“So, remove the notion of the party politics and some people claiming otherwise,” Ntshavheni said, stating that they could also be “naughty” and release the names of people who participated in the motion.
The DA and the ANC have been at loggerheads since the beginning of the GNU, clashing over different policies and legislation.
The DA opposed three key acts passed by Ramaphosa: The National Health Insurance Act, Basic Education Laws Amendment Act and the Expropriation Act.
For the budget postponed, the DA received credit from South Africans for their efforts to postpone the budget.
kamogelo.moichela@iol.co.za
IOL Politics
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