DA challenges fiscal framework, slams VAT hike process as unlawful

DA leader John Steenhuisen briefing the media

2 minutes

Democratic Alliance (DA) leader John Steenhuisen says parliament did not follow proper procedure when it adopted the 2025/2026 Fiscal Framework. He says the entire process was unlawful and irregular.

Steenhuisen was campaigning in Phoenix, north of Durban, ahead of a by-election.

The DA rejected the half a percentage point VAT increase for this year that was supported by the ANC in Finance Minister Enoch Godongwana’s budget.

The party has filed papers in the Western Cape High Court challenging Parliament’s passing of the 2025/26 National Budget.

“The process of parliament adopted to process the fiscal framework was not in line with the money bills amendment act, and I think that the court case will show that quite clearly, and it would be wrong for any party that respects due process and the rule of law to permit a process like that to remain unchallenged because it sets a precedent for how we will do it next year and the year after, and it’s very important that we do get legal clarity on that issue. The other matter that we’ve taken to court is, of course, the issue around the powers of a single minister without any reference to anybody else or Parliament to be able to raise VAT. We believe that that is a lacuna in the law, and there just needs to be some legal clarity on that, given the fact that now budgets are going to be very different from the way budgets have been processed in the last 30 years,” Steenhuisen explains.

📌 This week, we voted against the ANC’s VAT Budget and took the fight to court to stop the unjust VAT hike set for 1 May. We’re challenging the flawed process, lack of oversight, and unconstitutional powers granted to the Finance Minister. See our trending news. 🗞️ pic.twitter.com/DCv9SEdtmr

— Democratic Alliance (@Our_DA) April 4, 2025