DA's GNU position hangs in the balance as VAT hike splits the coalition

THE DA's Federal Executive was last night locked in a meeting to decide on its future in the Government of National Unity (GNU), having been dealt a huge blow after its coalition partners, with the help of ActionSA, managed to have the Fiscal Framework Policy and Revenue Proposals adopted in the National Assembly.

- MAYIBONGWE MAQHINA

DA federal council chairperson Helen Zille said her party had met for 90 minutes and began its discussions on the current situation in relation to the Budget, economic reform, the VAT increase and the DA's position in the GNU. "These discussions are not yet final and will be ongoing," she said. Earlier the party filed an urgent application in the Western Cape High Court to interdict the VAT increase and also set aside the parliamentary process that adopted the Fiscal Framework Policy and Revenue Proposals. In court papers, Zille asked the court to set aside the adoption of the fiscal framework and send the report back to the finance committees. The party also wants the court to interdict the VAT increase on May 1, pending the final determination of the Part B application. Part B challenges the legislative provision that granted Finance Minister Enoch Godongwana power to amend the VAT rate.