The Leader’s Digest: We Stopped the VAT Hike. Now We’re Fighting for Your Rights in Court.

14 May 2025 in Leader's Digest

Last month we celebrated a major win for the people of South Africa: the scrapping

of the ANC’s proposed VAT increase. This wasn’t just a DA victory—it was a victory

for every household that would have had to pay more for food, electricity, and

transport. See our media briefing here.

But our fight is not over. Part B of our court application continues. We are challenging

section 7(4) of the VAT Act, which lets the finance minister raise VAT without

parliamentary approval. That power belongs to Parliament, not one minister. This

case is about protecting your rights—making sure tax increases are never imposed

in secret, without scrutiny or accountability.

Fighting for Fair Opportunity – Not Division

Just as we are fighting for fairness in taxation, we are also defending fairness

in employment. The DA is challenging the Employment Equity Amendment Act,

which gives the Minister of Labour the power to impose rigid, race-based hiring

targets across sectors. We support redress—but it must be based on merit, not

race. That’s why we’ve joined civil society organisations in court to contest this

law. South Africa’s future depends on inclusive policies that grow opportunity for

everyone. Watch our media briefing here.

In both the VAT case and the Employment Equity challenge, we are standing up for

a simple but powerful principle: that every South African deserves a fair chance—

not more division, punishment, or bureaucracy.

The DA’s Alternative: Growth and Jobs, not Tax and Quotas

There is a better way. We can rescue South Africa by growing the economy, cutting

waste, and restoring confidence—not through higher taxes or racial quotas. That’s

why our six-point economic plan remains crucial:

  1. Cut wasteful spending through an independent expenditure review.
  2. Amend the Expropriation Act to protect property rights.
  3. Slash red tape to support small businesses, with help from the World Bank.
  4. Expand municipal policing to fight crime locally.
  5. Reform healthcare through public-private partnerships.
  6. Grow trade through strong international ties that bring jobs home.

This plan is about one thing: getting South Africans working again.

Where We Are in the Budget Process

Parliament adopted the fiscal framework earlier this month—but the court has

now set that framework aside. Why? Because smaller parties backed the VAT hike,

and the Minister announced it without proper process. Now, the Minister will table

a revised budget on 21 May.

Let me be clear: the delays in the budget process are not dysfunction—they are

democracy. The ANC can no longer rubber-stamp its way through Parliament. In

the Government of National Unity, the DA is standing firm for all South Africans.

The Road Ahead

The VAT victory shows what’s possible when we act together. We didn’t just oppose

the hike—we stopped it. We protected the people’s rights, and we proved once

again that the DA is in your corner.

We’re not just in court or Parliament—we are in government. Across national,

provincial, and municipal spheres, we’re delivering fairness, jobs, and growth. The

DA has never been in a stronger position. Now is our chance to make meaningful

change happen.

The Loss of Two Stalwarts

This month, we mourn the loss of two deeply respected members of our Democratic

Alliance family.

Douglas Gibson, a former DA Chief Whip and South Africa’s Ambassador to

Thailand, passed away on 9 May. Douglas was a giant of principle and conviction.

We honour his memory by continuing the work he dedicated his life to: building a

better, more just South Africa.

We also tragically lost Councillor and Mayco Member Xolile Kalipa, who was

gunned down in Kayamandi on Sunday 4 May. Xolile was a passionate servant of his

community. Our thoughts and prayers are with his family, friends, and colleagues.

We will not rest until his killers are brought to justice.

Their loss reminds us of the stakes of this work, and the courage it demands.

We honour them best by pressing forward, with greater resolve.

Yours in service,

John Steenhuisen

Federal Leader, Democratic Alliance