Ntsaveni claims DA’s Budget opposition is anti-poor. Photo credit: Daily Maverick
(The Post News)- Minister of Finance Enoch Godongwana has re-tabled the budget prior to the historic three-week delay. This included a VAT increase to 16% by the 2026/27 financial year, with a 0.5% rise in 2025/26 and another in 2026/27.
At a post-cabinet briefing on Thursday, Minister in the presidency Khumbudzo Ntshaveni said the DA’s opposition to the budget isn’t about VAT increases. Ntshaveni says it is about reversing the gains of transformation; it is anti-poor, anti-middle class, and aims to undo the Land Expropriation Act. The DA has filed papers in the High Court to challenge the Expropriation Act, arguing it is unconstitutional.
Moreover, the DA has rejected the tax increases unless they are temporary and paired with major reforms to boost the economy, create jobs, and reduce taxes within three years. But Ntshaveni believes that the DA refusing to support the budget comes from its opposition to the BELA Act and the NHI. She says South Africans must not be fooled when the DA claims they oppose VAT increases. She further explains that everyone has agreed on the VAT increase and the necessary mitigation measures but feels the DA is holding the country ransom because they want to reverse the gains of the Land Expropriation Act.
President Cyril Ramaphosa signed the bill to replace the 1975 Expropriation Act in February. This was done following a five-year cons and parliamentary processes. The Act aligns with the Constitution and outlines how the State can expropriate land for the public interest with mediation or courts resolving disputes.
Ntshaveni stressed that the Act is unrelated to the budget, and its implementation will comply with the constitution fully. Ramaphosa said the Expropriation Act could be used to take abandoned buildings in Joburg’s CBD without compensation earlier this week. He said the abandoned buildings where the owners have fled should be subject to the law that was just passed. He adds that this strategy aligns with the constitution and the Act. This marks the first time Ramaphosa has clearly stated that the Act also applies to properties other than land without compensation.
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