S-African coalition member takes legal action against tax hikes
(MENAFN) The Democratic Alliance (DA), a key member of South Africa's ruling coalition, has filed a lawsuit to block a proposed tax hike, arguing it will have a "devastating effect" on the population. The legal action follows the South African National Assembly's narrow approval of the government's fiscal framework and revenue proposals, which include a 1% increase in Value Added Tax (VAT) over the next two years. The plan was passed with 194 votes in favor and 182 votes against.
The DA, which opposed the VAT hike, claims that the parliamentary process supporting the fiscal framework was flawed. Helen Zille, chairperson of the DA’s federal council, stated that the VAT increase, set to take effect on May 1, would further burden South Africans struggling with high living costs. As part of their legal action, the DA aims to prevent the VAT increase from going ahead.
The decision comes amid growing tensions within the Government of National Unity (GNU), formed in 2024 after President Cyril Ramaphosa's African National Congress (ANC) lost its parliamentary majority. The DA’s opposition to the tax hike has raised concerns about the stability of the coalition, with some calling for the DA to decide whether to continue its participation in the government. Ramaphosa's spokesperson, Vincent Magwenya, criticized the DA for opposing the budget while remaining in the coalition.
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