The South African government is embroiled in a legal battle over its proposed 0.5% VAT increase, which would raise the rate to 15.5% starting May 1.
The Democratic Alliance (DA), which joined the government after the African National Congress (ANC) lost its majority last year, has taken the matter to court. The party argues the increase will disproportionately affect the poor and cannot be supported.
The government says the increase will help close a R13.5 billion budget deficit and generate over R15 billion annually for health, education, and social services.
Opposition parties and civil society groups have criticized the budget as anti-poor, noting that over 20 million South Africans rely on welfare grants, with unemployment exceeding 32%. VAT applies to essentials such as food and electricity.
The ANC and DA, now uneasy allies, remain divided on key issues including foreign policy, land reform, and public service funding.
This VAT dispute is the latest sign of friction in the unity government formed after the ANC’s worst electoral performance in three decades.
Africanews.
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