General News

Tensions rise in SA’s unity government as ANC, DA clash over VAT hike

Date: Apr 12, 2025

The stability of South Africa’s (SA) Government of National Unity is expected to face fresh pressure today as leaders from the African National Congress (ANC) and the Democratic Alliance (DA) hold crucial talks amid a growing row over tax policy.

The meeting, set to begin before midday, comes at a tense moment for the coalition, with relations between the two major parties souring over the ANC’s proposal to raise Value-Added Tax (VAT).

Last month, Finance Minister Enoch Godongwana unveiled the 2025 budget, which included plans for a VAT increase, a move the DA firmly rejected. The party voted against the budget and has since taken legal action in a bid to stop the tax hike from going ahead.

The DA argues the proposed increase would hit ordinary South Africans hardest and has accused the ANC of ignoring the economic realities facing low- and middle-income households.

As the parties head into discussions, there is growing concern over whether the unity government, formed with the aim of fostering co-operation and stability, can withstand such significant policy disagreements.  

--ChannelAfrica--

Comments

comments powered by Disqus

Web Content Viewer (JSR 286)

Actions
Loading...
Complementary Content
CLOSE

Your Name:*

Your Email:*

Your Message:*

Enter Captcha:*