CURRENTLY ON AIR ⇒
  • Highlights of the Days Programmes
    Wednesday, 10:05 pm - 4:00 am
    [ - ]

feedback@radioislam.org.za

logo


((( Listen Live )))))
Radio Islam Logo


DA Claims Victory as Treasury Backtracks on VAT Hike Following Legal Pressure

Neelam Rahim | neelam@radioislam.co.za
3-minute read
25 April 2025 | 16:16 CAT

A celebrates the Finance Minister’s U-turn on the VAT hike following a successful legal challenge. Photo: YouTube

The Democratic Alliance (DA) has claimed a major victory following Finance Minister Enoch Godongwana’s decision to abandon the planned 0.5 percentage point increase in Value-Added Tax (VAT), initially scheduled to come into effect on May 1st—Workers’ Day.

This reversal, according to the DA, is a direct result of the party’s legal challenge brought before the courts earlier in the week. DA spokesperson Willie Auckamp told Radio Islam International, “This announcement follows directly after the lawyers acting for the Minister approached us to propose an out-of-court settlement.”

The legal battle, which played out in court on Tuesday, saw justices questioning the legitimacy of the VAT increase, signaling the DA’s high likelihood of success. “It was very clear that we were going to win,” said Auckamp. “The Minister’s legal team knew it too, and that’s why they reached out.”

While no formal settlement has been signed yet, the DA insists on recovering legal costs and remains committed to challenging Section 7.4 of the VAT Act, which currently allows the Finance Minister to increase taxes without broader government consultation. Auckamp explained, “We believe it is unconstitutional for one person in the executive to raise taxes unilaterally.”

Despite the settlement discussions, the court is expected to issue a judgment on April 29. Should no agreement be reached, the legal process will continue.

Politically, the VAT saga has further strained relations within the Government of National Unity (GNU). While the DA reiterates its commitment to the GNU, it has criticised the ANC for not upholding the coalition’s founding principles. “The ANC is a 39% party now. They must learn to share power,” said Auckamp. “We cannot be rubber stamps.”

The DA emphasised that it had offered alternatives to the VAT increase, all of which were dismissed by the ruling party. “Had they adopted our amendment to the fiscal framework on April 1st, this crisis could have been avoided,” said Auckamp.

As pressure mounts on the ANC, the broader implications of this VAT climbdown may set the tone for the coalition’s future.

Listen to the full interview on The Daily Round-Up with Moulana Junaid Kharsany and the DA spokesperson Willie Auckamp here.

ADVERTISE HERE

Prime Spot!!!

Contact:
advertisingadmin@radioislam.co.za 

Related Articles

City Power In Debt

City Power In Debt

Rabia Mayet | rabiamayet@radioislam.co.za 28 April 2026 3-minute read Fuel supplier African Rhino Fuels has launched legal action against City Power, a Johannesburg power utility, alleging its non-payment for 250 000 litres of diesel in July 2025. Struggling to keep...

read more
The Asia Pacific Report

The Asia Pacific Report

Sameera Casmod | sameerac@radioislam.co.za 23 April 2026 | 12:15 CAT 4-minute read Filipino migrant workers cannot return to Middle East Over 40 000 Overseas Filipino Workers (OFWs) are currently stranded or unable to return to the Middle East due to airspace...

read more
A Frozen Conflict

A Frozen Conflict

Rabia Mayet | rabiamayet@radioislam.co.za 22 April 2026 3-minute read Trump’s announcement of an indefinite extension of the ceasefire with Iran, while continuing the blockade at the behest of Pakistan, has left the conflict in the Middle East unresolved. In an...

read more
Pakistan’s Role As Mediator

Pakistan’s Role As Mediator

Rabia Mayet | rabiamayet@radioislam.co.za 20 April 2026 1-minute read Pakistan’s field marshal Asim Munir and Prime Minister Shehbaz Sharif concluded separate diplomatic visits aimed at ending the Israel/US and Iran conflict. Marium Kamal, political analyst and...

read more
The Middle East Report

The Middle East Report

Sameera Casmod | sameerac@radioislam.co.za 17 April 2026 | 13:25 CAT 3-minute read Politics obstruct US-Iran nuclear deal The announcement of a ten-day agreement that aims to pause Israel’s intense six-week onslaught on Lebanon has brought a sense of relief to Beirut....

read more

Subscribe to our Newsletter

0 Comments