As tensions rise within South Africa's political landscape, the Democratic Alliance (DA) finds itself at a crossroads following a contentious budget vote that has sparked a legal challenge and raised questions about its future in the government of national unity (GNU). On Thursday, April 3, 2025, DA Federal Council chairperson Helen Zille addressed media outside the Western Cape High Court, where the party filed a court application against the parliamentary report on the fiscal framework adopted the previous day.
The DA's legal action aims to declare the proceedings of the Standing Committee on Finance null and void and to obtain an urgent interdict to prevent the scheduled 0.5 percentage point VAT increase set to take effect on May 1. This move comes after the DA opposed the adoption of the budgetary report, signaling a significant rift within the GNU, where the DA is the second-largest partner after the African National Congress (ANC).
During her address, Zille emphasized the party's determination to halt the VAT increase, stating, "The DA never only has one plan. We have a whole series of plans and we are absolutely determined that we are going to succeed in our plan to stop VAT on the 1st of May as announced by [Finance] Minister [Enoch] Godongwana." She dismissed claims made by ActionSA that they had successfully halted the VAT increase, asserting that the fiscal framework passed by Parliament includes the increase and will be implemented as scheduled.
The implications of the DA's decision regarding its participation in the GNU are profound, according to Zille. She stated, "We know that whatever decision we take will have profound implications for South Africa and for our economy, so we’re not rushing into anything." The party's Federal Executive was convening on Thursday to deliberate on their next steps, as the internal discussions continue.
ActionSA, which had supported the fiscal framework report in Parliament, expressed dissatisfaction with how its recommendations were represented. Parliamentary leader Athol Trollip remarked that their support for the budget remains conditional on the strict fulfillment of agreements to scrap the VAT increase and address income tax bracket creep through alternative proposals. He noted, "Our support remains conditional on the strict fulfilment of the agreement to scrap the VAT increase and income tax bracket creep through alternative proposals – several of which we have already outlined."
Trollip further stated that the DA is well within its rights to pursue legal remedies but criticized the party for its approach, suggesting that their actions may further complicate the budgetary process. He claimed, "Even a legal challenge is going to delay this matter even further and what’s going to happen on the 1st of May is that VAT is coming, so they can try what they may and scapegoat everybody else for the fact that they overplayed their hand and lost."
The backdrop of this political turmoil was highlighted by Deputy President Paul Mashatile's address at the inaugural Gauteng Investment Conference, where he reaffirmed the government's commitment to economic reform and social justice. Mashatile noted that the budget, which saw 194 MPs voting in favor and 182 against, reflects the government's dedication to the vulnerable and marginalized. He stated, "Any view on the Budget that seeks to reject the commitment our government has to the vulnerable and marginalised is not a Budget that is for the people and must, therefore, be rejected unequivocally."
The DA's legal challenge stems from allegations of procedural irregularities in the parliamentary process that led to the budget's adoption. Zille criticized the ANC for allegedly engaging in backroom deals with other parties to secure votes, undermining the integrity of the GNU. She stated, "We are not in the GNU for blue lights, cars, or ministerial homes or status. We are in that GNU for one sole purpose, and that is to get South Africa’s economy to grow at the rate it needs to grow in order to absorb more people into productive employment and thereby reduce poverty."
As the DA navigates this complex political landscape, Zille dismissed the notion that their actions were politically motivated, insisting that their focus remains on economic recovery. "This is about budget and a wider economic package. Because we are here to get the ANC to share power, most crucially on an economic plan to save South Africa," she explained.
In response to the DA's criticisms, ANC spokesperson Mahlengi Bhengu-Motsiri defended the budget process, emphasizing that it was not about political maneuvering but rather about collective responsibility. The ANC has supported three critical principles in the budget negotiations, including reconsideration of the VAT increase and adjustments to personal income tax brackets.
The ongoing discussions within the DA and its potential withdrawal from the GNU could have significant ramifications for South Africa's political stability and economic outlook. As Zille stated, "We will consider all the options, look at all the consequences, and try to predict the unintended consequences, and then make a rational decision… at the right time." The coming days will be crucial as the DA weighs its options and the implications of its decisions on the future of the GNU.
