This morning, a negotiating team appointed by the Federal Executive of the Democratic Alliance (DA) met a delegation from the African National Congress (ANC) in Johannesburg. The discussion follows in the wake of the recent dispute over the Fiscal Framework, which contains a 1% VAT increase over two years.
The engagement took place in a constructive atmosphere, with both sides speaking respectfully yet frankly about the need to resolve the impasse over the budget and to enhance cooperation between the two parties in the context of the Government of National Unity (GNU). The DA reiterated our position that a VAT increase is unaffordable in the absence of meaningful reform that will increase economic growth and create jobs.
The DA is committed to finding solutions in the best interests of the people of South Africa, both in relation to the budget and to strengthen the GNU.