The point of contention? The African National Congress (ANC)'s backing of Finance Minister Enoch Godongwana's proposed value added tax (VAT) increase, which has caused significant unrest within the Government of National Unity (GNU).

The coalition, which was formed nearly a year ago following the 2024 elections, saw the ANC drop below the crucial 50% mark for the first time since the country’s democracy began. As a result, the DA has strongly opposed the 2025 national budget, voting against it, and has taken the matter further by launching a legal challenge to block the VAT increase scheduled for May 1.

Steenhuisen shared the party’s concerns, outlining the DA's position on the matter. “Five weeks ago, we presented a proposal in Parliament and at Cabinet level, suggesting a fiscal framework that wouldn’t include a VAT increase. Unfortunately, the fiscal framework that was passed still includes the VAT hike, and we believe this is a problem," he explained. "So, as you know, we have already gone to court to prevent the VAT increase from coming into effect on May 1.”

Despite the ongoing legal proceedings, Steenhuisen pointed out that the DA remains committed to stable, accountable governance. He stressed that the party is open to discussions with any other members of the GNU who share the same vision of growing the economy and creating jobs.

“We believe it’s in SA’s best interest to have a government that is stable and accountable,” Steenhuisen continued. “We’re ready to work with any party within the GNU who wants to prioritise economic growth and job creation, and we’re focused on finding a way forward."

--ChannelAfrica--