By Johnathan Paoli
Despite the amended 2025/26 National Budget being passed by a narrow margin, parties have already threatened legal action against its adoption, citing procedural irregularities and bad faith on the part of the African National Congress.
The Democratic Alliance will file papers in Western Cape High Court on Thursday to challenge the National Assembly’s passing of the budget on Wednesday, with a narrow win of 194 for and 182 against, with no abstaining votes.
“It is unthinkable that ActionSA has handed this VAT hike to the ANC on a platter, and it is both unlawful and unconstitutional how Parliament processed the Budget,” party leader John Steenhuisen said.
The Economic Freedom Fighters said it was currently consulting with its legal team on the appropriate legal recourse to challenge the adoption of the fiscal framework and revenue proposals.
“Parliament cannot and must not become a rubber stamp for illegality. We will use every democratic and legal means available to ensure accountability, constitutional compliance and a people-centred fiscal policy,” it said in a statement.
The budget debate was marked by fierce opposition, with heated exchanges among political parties, and later a strong pushback from unions federations, who argued that the VAT hike would disproportionately impact the poor.
Steenhuisen described the budget’s passage as “both unlawful and unconstitutional,” accusing the ANC of pushing through a tax increase that would worsen the financial strain on ordinary South Africans.
It also directed its criticism at other smaller parties, including the Inkatha Freedom Party, Patriotic Alliance, the GOOD party, Rise Mzansi, the United Democratic Movement, the Pan Africanist Congress, Al Jama-ah and Build One South Africa.
Steenhuisen argued that the Finance Committee’s session on 1 April failed to properly present the Fiscal Framework for approval or rejection, and disregarded proposed amendments from opposition parties.
This alleged oversight, he claimed, compromised the legality of the budget’s approval.
“The DA refuses to give in to the ANC’s tax increases. They remain hellbent on making people poorer. If they bought their own groceries or filled their own tanks, they would know how expensive life already is, Steenhuisen said.
EFF leader Julius Malema used the budget debate to declare the collapse of the Government of National Unity (GNU).
“We have said it all along that there is nothing called GNU,” Malema stated. “What is uniting you if you can’t agree on something as fundamental as the national budget?”
EFF treasurer general Omphile Maotwe reiterated that the budget process violated the Money Bills Amendment Procedure and Related Matters Act.
The uMkhonto weSizwe Party (MKP) also rejected the budget, with MP Siyabonga Gama arguing that ActionSA’s “conditional amendment” of the fiscal framework was an illegitimate manoeuvre to push through the VAT increase.
The Freedom Front Plus opposed the budget on economic grounds.
The SA Federation of Trade Unions issued a scathing statement condemning both the ANC and DA for adhering to a “neoliberal economic framework” that burdened the working class.
It called for alternative revenue measures, including a wealth tax, higher corporate income tax and stricter measures against tax avoidance by multinational corporations.
“A VAT increase is a tax on survival. It punishes the unemployed, the working poor and the marginalised who are already struggling under the weight of unemployment, food price inflation and public service cuts,” Saftu general secretary Zwelinzima Vavi said in a statement.
The federation has vowed to mobilise mass protests and work stoppages to oppose the tax hike.
The ANC has welcomed Parliament’s adoption of the fiscal framework, calling it a “people-centred” and “pro-poor”.
Spokesperson Mahlengi Bhengu-Motsiri said it prioritised the needs of vulnerable communities while maintaining fiscal responsibility.
She highlighted key provisions, including increased investment in infrastructure, industrialisation and social services such as healthcare and education.
Despite parties criticising the 0.5% percentage VAT hike, the ANC defended it as a necessary measure to sustain essential public services.
The party stressed that expanded VAT exemptions and targeted support for low-income households would mitigate the impact on the poor.
According to the framework, the National Treasury will be given 30 days to consider a viable alternative source of income in lieu of the VAT hike.
However, if the court rules in favour of the DA or the EFF, the government may be forced to revisit its budget strategy.
INSIDE POLITICS