The DA has poured cold water on the national budget speech delivered by Finance Minister Enoch Godongwana on Wednesday.
The party fell short of saying that the budget was illegitimate, charging that it had only 39% support.
That is approximately the percentage of the ANC numbers in the National Assembly.
Despite a shift from the initial two percentage points increase on VAT to 0.5 that was announced on Wednesday with another 0.5 next year, the DA said it was still opposed to any VAT hike.
DA opposed to VAT increase
Speaking to Newzroom Afrika, DA leader John Steenhuisen said the DA was opposed to the increase and hinted that the ANC might learn the hard way when voting time comes to pass the budget and other things related to it.
According to the DA, it was uncalled for the ANC to forge ahead with the VAT increase without the support of their crucial GNU partner, the DA.
“There needs to be a realisation by all parties in the coalition that none of them have a majority,” said Steenhuisen.
“You do need to make compromises sometimes. We have done so on the cabinet seats and committee chairs, BELA, and minimum wage.
“It is also time for other parties in the coalition … to make a concession so that we walk away with something important to our voters and the people that elected us.
“We do not need a VAT increase in South Africa. And I think burdening our citizens with cumulative one percent, 0.5% this year and 0.5% next year, in the absence of putting on the table some of the big, bold things that need to be done, is wrong.
ANC refused to compromise
“We went into this budget clear that we were opposed to the VAT increase. And we went into the elections saying we were opposed to that,” he went on.
“We were looking for compromises. However, the compromises were not made by the other side (ANC).
“And therefore, we are not in the position to support this budget. As we sit and hear, this is a 39% budget and a long way from getting over the line.”
Steenhuisen said the DA is not going to donate its votes blindly come April 2. That is the date when it is time to vote for the Fiscal Framework. And when the ANC will be in need of the DA’s numbers.
The same will be the case for the Taxation Laws Amendment Bill.
“We are open and willing to talk. But it must be a discussion where the DA gets something that it wants out of the process as well.”
