The Democratic Alliance (DA) has taken legal action against the South African government’s 2025 budget, challenging the constitutionality of its approval process and seeking to block a proposed value-added tax (VAT) hike. The DA, the second-largest party in the fragile ruling coalition, opposed the fiscal framework passed by Parliament, calling the process procedurally flawed. The party also argued that the proposed 1% VAT increase—beginning with a 0.5 percentage point increase on May 1—would disproportionately impact low-income citizens. The move deepens tensions within the unity government formed after the ANC lost its majority in 2024. The DA says it will soon decide whether to remain in the coalition, raising concerns over the stability of South Africa’s current political arrangement.
Source: Reuters
