DA Won't Bend on VAT Hike, Citing Risk to Economic Stability

The DA is standing firm on no value-added tax (VAT) increases and has, instead, proposed a range of spending cuts.

- Faizel Patel

Several political parties, including the DA, objected to Finance Minister Enoch Godongwana's proposal to raise the VAT rate to 17% from 15%.

This resulted in Godongwana not presenting the budget as scheduled last month, which was the first time this had happened in the country's history.

The budget will now be delivered on 12 March.

On Sunday, the ANC said it may lean on the EFF to get Godongwana's budget over the line.

Treasury is suggesting a 0.75% VAT increase, but DA spokesperson on finance Mark Burke is adamant that an increase would negatively affect those already struggling to make ends meet.