The Democratic Alliance (DA) has declared a significant victory in its campaign against the government’s proposed Value-Added Tax (VAT) hike, following a proposal for an out-of-court settlement made by lawyers acting on behalf of the Minister of Finance.
The development comes after the DA filed an urgent court application to interdict the VAT increase, arguing that the measure would place an undue financial burden on South African households already grappling with high living costs, unemployment, and economic instability.
According to the DA, the legal action was part of its long-standing opposition to what it calls an “unjust and regressive tax policy.”
“This marks a turning point in the fight to protect ordinary South Africans from unjustified financial pressure,” said the party in a statement.
While the details of the proposed settlement have not yet been disclosed, the DA framed the move as a sign that the government has recognized the legal and ethical challenges surrounding the VAT hike. The party reaffirmed its stance that any future fiscal reforms must prioritize the country’s most vulnerable citizens.
The proposed VAT increase had sparked widespread public concern, with civil society organisations and consumer advocacy groups warning that higher food and basic goods prices would deepen inequality and poverty levels.
The DA stated that it will continue to monitor developments and provide further updates once the legal settlement process is finalised.
