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DA challenges ANC’s VAT hike, risking collapse of GNU

April 04, 2025

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The Star

THE DA’s decision to take the 0.5 per-centage point VAT hike and the fiscal framework do-cument to court for review has sparked a chain reaction that may ultimately lead to the demise of the Gov-ernment of National Unity (GNU).

- MASHUDU SADIKE

DA challenges ANC’s VAT hike, risking collapse of GNU

The Presidency has hinted that Pres-ident Cyril Ramaphosa may re-validate the ANC’s partnership with the DA, Pres-idency spokesperson Vincent Magwenya reportedly confirmed.

“You can’t be part of a government where Budget you oppose.”

Magwenya added that Ramaphosa would “take his time” to reflect on the situation, before writing appears to be on the wall.

The ANC has already begun to dis-tance itself from the DA, with Finance Minister Enoch Godongwana telling the Budget in Parliament on Wednesday saying that his party would have to draw the line.

“You can’t vote against the Budget and the next day, you want to implement that Budget. You have to draw the line,” Godongwana said.

As the GNU teeters on the brink of collapse, both the DA and the ANC are reportedly exploring options for new partnerships.

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