The Democratic Alliance (DA) has launched a petition to oppose the proposed Value Added Tax (VAT) increase, arguing that “South Africa needs more jobs, not more tax”, vowing to dismiss any national budget that doesn’t drive economic growth.
“It’s very important to get the whole of society involved to show that they agree with the DA on the VAT hike through the petition," the DA’s national spokesperson Willie Aucamp told IOL News.
The petition follows a delay in Finance Minister Enoch Godongwana’s scheduled Budget Speech on Wednesday.
The delay was caused by tensions within the Government of National Unity (GNU) over the proposal.
The DA claimed it was the driving force behind the postponement of the speech.
The budget proposal included a VAT hike, aimed at funding public sector wage increases, retaining essential workers such as teachers and doctors, expanding early childhood development programmes, and addressing the country’s retail infrastructure crisis.
The VAT increase would have raised the rate to 17%, which was widely rejected during an early emergency Cabinet meeting ahead of the scheduled speech.
According to a leaked draft of Godongwana’s speech, the Treasury had argued that the increase was necessary to fund the wage bill for public servants and improve South Africa’s public services, including the rail system.
However, cabinet ministers which included members of the GNU, from the DA, PA, IFP, FF+, PAC and others, could not find consensus on the issue.
As a result, the Budget Speech was postponed for the first time since 1994, with it now being scheduled for March 12, pending further discussions with Cabinet on the VAT increase.
Aucamp told IOL News that the petition would not affect relations with the GNU partners, especially the ANC.
“No at all, it would not affect the GNU relations because we are a matured coalition that can voice our concerns.
“Being in a coalition does not mean that we cannot stand by what we believe in. Nobody can complain when we involve the public.
Get your news on the go, click here to join the IOL News WhatsApp channel.
“Petitions are something that has been made law in our country. So, no, we must do things like that. It’s our duty,” Aucamp added.
The petition, which needs about 80,000 signatures, has already garnered 4,495 signatures.
It argues that the government should focus on making it easier for businesses to thrive, which would result in job creation, and drive economic growth, rather than imposing higher taxes to address government failures.
The party said instead of a VAT increase, it has proposed policies to support businesses, grow the economy and create jobs.
IOL Politics