VAT fight not over, says DA's Zille

BN

Babalo Ndenze

24 April 2025 | 9:41

DA federal council chairperson, Helen Zille briefed the media in Parliament on Thursday morning following National Treasury’s about turn and decision to withdraw the 0.5 percentage point VAT increase.

CAPE TOWN – Democratic Alliance (DA) federal council chairperson, Helen Zille, said that they may have won the first round in the value-added tax (VAT) fight through their legal challenge, but the fight was not over.

She said they were now expecting Finance Minister Enoch Godongwana and the National Treasury to provide the party with a full settlement proposal in court.

Zille said Parliament also had to settle with the DA out of court and decide on how to process the new fiscal framework without the VAT increase.

Zille briefed the media in Parliament on Thursday morning following National Treasury’s about-turn and decision to withdraw the 0.5 percentage point VAT increase.

"There were two main respondents in our case. Number one was the minister and obviously the National Treasury and two was Parliament. We have to seek a settlement agreement with both before we can say we have beaten this VAT increase. So it’s important for us to say that while victory is a nose length away, we still have to cross the finishing line."

ALSO READ: Treasury: Scrapping VAT hike will leave a R75 billion gap over next 3 years

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