3 hours Ago By Lerato Matlala
Home | No parties objected to VAT hike in Budget consultations: Ntshavheni Minister in the Presidency Khumbudzo Ntshavheni has revealed that no political party opposed the proposed VAT increase during pre-budget consultations. Ntshavheni was addressing a post-cabinet briefing in Cape Town on Thursday, saying the tax increases will finance stability in South Africa. She further says the Democratic Alliance’s (DA) opposition to Wednesday’s budget speech has nothing to do with the VAT increase, but rather demands that the Expropriation Act be revised – as raised in a budget consultative meeting on the 3rd of this month.
“The demand from the DA as articulated by the leader John Steenhuisen after the post cabinet meeting indicates that their issue with VAT, by the way they there was not dispute on the 3rd of March, their issue with VAT has nothing to do with the interest of protecting the poor. Their issue with VAT is that they are always interested in making sure that we do not achieve the transformation gains this country has set itself to. It is about politics; it is about the BELA Act that seeks to make sure that children have access to schooling in the areas that they reside.
It is about NHI that demands that all South Africans access to basic and quality healthcare.” The DA called it an ANC VAT budget and said it is opposing the budget for this reason. But Ntshavheni stresses that “South Africans should not be fooled to say, when DA says they oppose VAT increase.
.. no, everyone signed on VAT increase.
.. and say let’s mitigate these things.
.. and things we said must be done have been done.
But now DA wants to hold the country for ransom because they want to reverse the gains of the Expropriation Act.” The value-added tax will increase by half a percentage point, with the government needing to cover a R60 billion budget shortfall. Finance Minister Enoch Godongwana says the same increase will be introduced next year, bringing the VAT rate to 16% in 2026.
Ntshavheni adds that economic structural reforms would grow the economy. NEWS APP SABC © 2025.
