The Democratic Alliance (DA) has taken a bold step by filing an urgent court application at the Western Cape high court against what they perceive to be procedural and constitutional irregularities in the approval of a fiscal framework that could potentially lead to an increase in VAT. The party, led by Helen Zille and finance spokesperson Mark Burke, is concerned that the proposed VAT hike will further burden South Africans who are already grappling with a high cost of living.
The DA’s legal challenge comes after the National Assembly narrowly passed the fiscal framework, despite the DA’s refusal to support it. The party argues that the process followed by parliament’s finance committees was flawed and invalidates the adoption of the fiscal framework. Additionally, they seek to declare a section of the Value Added Tax Act unconstitutional, as it grants the finance minister the authority to impose tax increases without full parliamentary approval.
Helen Zille emphasized that the DA is determined to stop the VAT hike and expose what they see as the ANC’s attempt to bypass democratic processes. Despite ActionSA’s assurance that the ANC had committed to not implementing the VAT hike, Zille dismissed this as “delusional” and reiterated the party’s resolve to challenge the fiscal framework in court.
The DA’s legal challenge has highlighted growing tension within the government of national unity, with the party accusing the ANC of failing to honor coalition commitments. Zille revealed that the DA had proposed an economic reform package to stimulate job creation and investment but smaller parties within the coalition sided with the ANC to push through the fiscal framework without meeting necessary conditions.
President Cyril Ramaphosa’s remarks to the ANC caucus implied that the DA would be leading itself out of the partnership if it failed to support the fiscal and revenue proposals. While Ramaphosa expressed his commitment to keeping the GNU together, he also made it clear that the budget vote would test the DA’s commitment to the coalition.
As the DA’s federal executive considers its options, Zille maintained that the party would not support any budget that further strains South Africans financially. The legal challenge signifies the DA’s unwavering stance on protecting the interests of the people and ensuring that democratic processes are upheld in the governance of South Africa.
