The 2025 Budget is in limbo as most parties in Parliament have rejected the budget.

Finance Minister Enoch Godongwana has proposed a 0.5% increase in VAT from 1 May this year and another 0.5% increase next year.

The ANC lacks the majority to pass the budget on its own. Parliamentary committees are expected to discuss the budget’s contents over the next few days.

A Parliamentary debate and a vote on the budget will follow, although no timeline has yet been made public.

Opposition to the budget has been swift and fierce.

The DA was first out of the blocks, with leader John Steenhuisen posting on X even before the Minister started speaking that the DA will not support this budget.

READ: Budget 2025: VAT increases proposed as the DA says it will not support it

In a statement shortly after the budget speech, Steenhuisen said the DA made it clear to the ANC in the GNU that they would not support any increase in taxes, unless those increases were temporary, and unless the ANC agreed to a series of major reforms that would grow the economy, create jobs, reduce waste and bring down taxes within 3 years.

But he says the ANC refused to agree to these measures.

“The underlying problem is that the ANC has still not accepted the outcome of the general election and cannot bring itself to share power. It is deeply unfortunate that the ANC is prepared to sacrifice the South African people and risk the economic future of the country rather than accept it no longer has majority support. The ANC VAT budget doesn’t have a majority, and the DA won’t give it one. It is now up to the ANC to fix the mess it has created.”

Before the budget was delivered, there was talk that the ANC would need to look to the EFF for support, but EFF leader Julius Malema also made it clear yesterday that his party will not vote for the budget in its current form as it is the poor that will carry the burden.

“We want the rich to pay. Let the corporate tax be increased, let the wealthy be taxed.”

He echoed Steenhuisen’s sentiments that the ANC must realise it does not have the majority anymore, and Parliament will not just rubber stamp the decisions of the ANC.

“There is no-one here with an outright majority. Today every decision that must be taken here, must be through consensus and trade-offs. So we are going to lobby other political formations to ensure we amend this budget.”

The MK-Party, VF-Plus and ActionSA have also indicted they reject the current budget.

The ANC will now have to convince parties both inside and outside of the GNU to vote with it to pass the budget, or concessions will have to be made.

The Parliamentary process will now play out, while South Africans wait with bated breath to see whether the tax proposals will be pushed through.

ALSO READ: 2025 Budget tax proposals: How it will affect your pocket