DA, ANC in fresh GNU talks after VAT reversal

The two biggest parties in the 10-member GNU have been at loggerheads over Finance Minister Enoch Godongwana’s proposal to raise value-added tax (VAT), announced in his Budget speech on 12 March.

The impasse over the budget has pushed the GNU to the brink. 

Although Godongwana has since withdrawn the VAT hike, a move he confirmed on Wednesday evening, tensions remain high.

The DA fiercely opposed the proposed increase and approached the Western Cape High Court in a bid to reverse it. After weeks of public criticism, the Finance Minister backed down.

A meeting between the ANC and DA scheduled for Thursday was postponed to Friday by ANC secretary-general Fikile Mbalula. 

Instead, the ANC held a press conference alongside several other parties, some inside, others outside the GNU, including the IFP, PA, ActionSA, PAC, Rise Mzansi, Bosa, UDM, GOOD, and Al Jama-ah. 

These parties supported the fiscal framework in Parliament. 

At the briefing, Mbalula claimed the reversal of the VAT hike came through parliamentary processes, not court pressure.

DA federal chairperson Helen Zille slammed the move to cancel the bilateral meeting in favour of a group press conference, calling it “extraordinary.”

“What we have been asking for since the very beginning of the mooted VAT increase is now coming to pass. 

The minister has conceded that we were right in our arguments from the beginning, and yet he seeks to undermine his major coalition partner by holding a press conference with parties outside the coalition to claim victory on a point that we have been fighting for since the very beginning,” Zille said.

DA leader and Agriculture Minister John Steenhuisen warned against any attempt to sideline the DA from the GNU over its VAT stance.

“We’re having our follow-up meeting with the ANC, after a very positive and constructive engagement last week. We’re looking forward to reporting back on the various issues discussed. As for our status in the GNU, we’ve always said we’re part of it until we’re not. If someone wants us out, they must say so.

“The GNU is based on a signed statement of intent, and we’re doing our part to move the country forward in a way that doesn’t harm the economy or our citizens. And if we’re kicked out simply for opposing harmful policies, I think that would be a very difficult wicket to defend,” he said.

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