DA says reversal of VAT decision a win for all South Africans: 'This is what we wanted!'

CapeTalk's Lester Kiewit interviews Karabo Khakhau, National Spokesperson for the Democratic Alliance.

Listen below:

Finance Minister Enoch Godongwana has announced that the planned 0.5% increase in value-added tax (VAT), originally set to take effect on 1 May, will no longer go ahead.

RELATED: Godongwana to reverse decision to hike VAT

The Democratic Alliance (DA), which had challenged the proposed hike in court, has welcomed the decision, calling it 'a win for every household, every breadwinner, and every South African who cannot afford higher prices at the till'.

Khakhau says the DA was adamant the increase should not be implemented, emphasising that South Africans have made it clear they cannot afford the additional burden, especially given the rising cost of living.

She adds that the party is awaiting a formal submission from Minister Godongwana’s team and will decide on the next steps once it has been received.

"We're very, very happy. This is what we wanted."

- Karabo Khakhau, National Spokesperson – Democratic Alliance

The Treasury warns that the R75 billion shortfall may necessitate cuts to critical frontline services.

But Khakhau pushes back on that claim, saying that 'there is no need' for such cuts.

She points to the DA’s previously tabled six-point plan, which proposes alternative ways to raise funds without increasing taxes.

The DA’s plan includes:

• Reducing government advertising expenditure
• Freezing non-essential government hiring for a year
• Conducting a national audit to root out 'ghost employees' in the public sector

"Prasa's latest audit alone indicated that at least 10% of their workforce does not exist! Essentially, they are paying salaries for people that don't exist."

- Karabo Khakhau, National Spokesperson – Democratic Alliance

Scroll up to the audio player to listen to the interview.