The crucial fiscal framework of the 2025 Budget has officially been adopted by Parliament following a vote by Members of Parliament (MPs) today.

The framework received support from 194 MPs, including those from the ANC, IFP, PA, GOOD, Rise Mzansi, UDM, PAC, Al Jama-ah, and BOSA.

However, 182 MPs opposed it, including members of the DA, Freedom Front Plus, EFF, MK Party, and ATM. Opponents argued that the fiscal framework report, adopted by the Standing Committee on Finance on Tuesday night, was unlawful.

One of the key recommendations in the report, championed by ActionSA, calls on the Treasury to explore alternative revenue sources to avoid a 0.5% VAT hike set for 1 May 2025.

ActionSA hailed this as a victory for South Africans, but the DA has taken a starkly different stance, announcing plans for legal action. The party contends that, contrary to claims of preventing a VAT hike, the increase will, in reality, be implemented.

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In a statement released on Wednesday evening, the DA confirmed it will file a legal challenge in the Western Cape High Court against Parliament’s approval of the Budget.

DA leader John Steenhuisen criticized the decision, stating, “It is unthinkable that ActionSA has handed this VAT hike to the ANC on a platter. The manner in which Parliament processed the Budget is both unlawful and unconstitutional.”

“The DA has vehemently opposed the Finance Minister’s Budget proposal and pushed for amendments to drive economic growth and job creation, which is what South Africa truly needs. Instead of addressing the struggles of ordinary citizens, the National Assembly has approved a Budget that includes VAT increases, making life even more expensive.”

Steenhuisen further argued that Tuesday’s Finance Committee meeting violated parliamentary rules, as the Fiscal Framework was not formally put forward for approval or rejection. Instead, a single proposal from one political party was adopted without consideration of other tabled amendments.

“This procedural flaw carried over into the National Assembly today. Several parties approved this flawed Finance Committee report, effectively endorsing the Budget measures announced by the Finance Minister on 12 March. The DA, however, opposed it.”

The DA’s court challenge is based on two key grounds:

• The DA disputes the procedure followed by the Finance Committee on 1 April 2025 in considering and approving the Fiscal Framework.
• The DA questions the constitutionality of revenue collection and expenditure measures becoming binding through the Finance Minister’s speech without proper parliamentary oversight or approval.

“We look forward to this matter being addressed in court, for the benefit of all South Africans who reject this budget. The DA will not yield to the ANC’s tax increases, which only serve to impoverish the people further. The ANC remains out of touch—if they had to buy their own groceries or fuel their own cars, they would understand how expensive life already is.”

The DA’s continued participation in the Government of National Unity now appears increasingly uncertain.