DA Stands Firm on VAT Court Challenge as Tensions Escalate in GNU

(The Post News)- The Democratic Alliance (DA) says it’s not backing down from its legal battle against the government’s proposed VAT hike, despite recent talks with the ANC and assurances that the Government of National Unity (GNU) remains stable.

Speaking after the weekend’s meeting between coalition partners, DA Federal Council Chairperson Helen Zille confirmed that the party would continue with the court application filed two weeks ago. “We have not decided to drop the court action on the VAT case,” Zille said.

The DA’s case, currently before the Western Cape High Court, challenges the legality of the process through which the 2025 Fiscal Framework and Revenue Proposals were adopted, specifically the 0.5 percentage point increase in VAT. The party argues that the hike will hit South Africa’s most vulnerable hardest, calling the tax increase regressive in its court papers.

The challenge hinges on claims that both the National Assembly and the National Council of Provinces (NCOP) passed flawed and unlawful reports. Among the procedural issues cited are the finance committees’ failure to vote on the final wording of the reports and the inclusion of a vague, non-binding recommendation to reconsider the VAT increase. “The reports adopted by the National Assembly and NCOP are unlawful and invalid,” the DA said in its court filings. The party also questioned the Minister of Finance’s authority to unilaterally raise VAT in terms of section 7(4) of the VAT Act, arguing that it bypasses parliamentary oversight.

In an interview with eNCA, Zille described the meeting with ANC officials, including Secretary-General Fikile Mbalula, as “very constructive,” though she made it clear that the DA didn’t hold back. “We didn’t mince our words,” she said. “We all agreed on the need for a rules-based GNU, but that has to be built on the foundation of the Statement of Intent that we negotiated last year.”

The ANC, for its part, is pushing for a new binding framework to guide decision-making within the GNU, one that would commit coalition members to support key parliamentary motions. Mbalula, speaking to journalists, stressed the importance of stability in government. “If they [DA] are interested for this country to function, they will come to the party. We all want South Africa to succeed. Do you want this country to be reduced to rubble because of reckless decisions? Should the ANC behave like a small puppy in the GNU? No, we’ve got a much bigger responsibility than anyone.” But Zille made it clear that the DA has no intention of signing on to anything new. “We already have a signed and sealed Statement of Intent that forms the basis of the GNU,” she said.

Despite the tensions, the DA insists it is staying the course within the GNU, at least for now. “We aren’t leaving. We’re going to push the envelope for as long as we can,” Zille told eNCA, adding that the DA will continue to challenge the VAT hike and other controversial policies like the Expropriation Act, both politically and in the courts. “We believe in the rule of law, and we’re going to keep fighting for what’s good for South Africa,” she said.

The Freedom Front Plus (FF Plus), another GNU partner, has also signaled discomfort. Its spokesperson, Wouter Wessels, said the party would continue assessing its participation in the unity government, adding that their involvement depends on whether it benefits their voters and the country as a whole.