The African National Congress (ANC) and nine other political parties on Thursday rubbished claims by the Democratic Alliance (DA) that the reversal of the value-added tax (VAT) hike is a victory resulting from the DA's court case heard on Tuesday.

The Inkatha Freedom Party (IFP), ActionSA, Pan Africanist Congress, Rise Mzansi, BOSA, United Democratic Movement (UDM), Good Party, Al-Jamah and Patriotic Alliance (PA) joined the ANC in a media briefing to communicate the outcomes of their discussions to resolve the Fiscal Framework.

All nine parties voted with the ANC to adopt the 2025 Fiscal Framework, with the 0.5% VAT increase.

Some of these parties argued that adopting the framework would end the Budget impasse while they negotiated with the ANC to scrap the VAT increase.

On Wednesday, Finance Minister Enoch Godongwana wrote to Speaker of the National Assembly Thoko Didiza to inform her that he would be withdrawing the Appropriation and Division of Revenue Bills.

These will include spending adjustments to close the revenue gap left by the cancelled VAT increase.

Parliament will now revisit expenditure to ensure fiscal sustainability without burdening the poor.

The ANC’s Government of National Unity partner, the DA, as well as the Economic Freedom Fighters (EFF), took Godongwana to court over the proposed 0.5% VAT hike, which would have come into effect on May 1, with Godongwana subsequently presenting both parties with out-of-court settlements.

“This is not a victory for any single party, nor is it about who claims the loudest voice. This is a people’s victory. It is a quiet but profound triumph of democratic institutions — of Parliament acting as the voice and shield of the nation,” the 10 parties said.

While addressing the media on Thursday morning, DA Federal Council chairperson Helen Zille said her party’s court intervention had been the “pivotal intervening factor” in the victory against the VAT hike.

Reading a joint statement, ANC national spokesperson Mahlengi Bhengu-Motsiri countered the VAT outcome did not arise from expedience, or as a concession to pressure or populism, but from a shared commitment across party lines that the working class and the poor cannot be further burdened in this economic climate.

“It is a decision firmly rooted in the national interest and in the moral clarity demanded by our Constitution,” she stated.

The parties further said the integrity of this process must be underscored.

“…it was Parliament — not the courts, not unelected bodies — that led the resolution. This is a reaffirmation of constitutionalism and a victory for democratic process.”

The parties said the outcome was the product of sustained, lawful, and transparent engagement, reflecting the constitutional supremacy of Parliament as the final authority on public finance.

ANC secretary-general Fikile Mbalula said the withdrawal of the VAT increase, the reaffirmation of parliamentary oversight, and the recalibration of fiscal priorities represented democratic maturity.

ActionSA leader Herman Mashaba said the parties present at the briefing were responsible for the scrapping for the VAT hike.

“The parties gathered here today have worked together, both inside and outside the GNU, in the best interests of South Africans,” he said.

He hit out at the DA saying the VAT increase withdrawal was not owing to “any court case that opportunistic parties now seek to falsely claim credit for”.

“[This is the outcome of] principled, good-faith negotiations, grounded in substance rather than extortionist, unpatriotic, and shamelessly dishonest politics,” he said.

He acknowledged the ANC and Godongwana’s roles in the negotiations, pointing out that the engagements were conducted in “good faith, with maturity, and with the best interests of the country in mind”.

“Nobody attempted to mislead or dupe anyone else. There was an absolute focus on the Budget and nothing else. Let us be clear: The reversal of this VAT increase was not achieved by the parties that were in court on Tuesday,” he reiterated.

He explained that the 10 parties adopted the controversial Fiscal Framework with the strict condition that a 30-day period would be used to assess revenue alternatives to a VAT increase.

Good Party leader Patricia de Lille said Thursday’s resolution was not the result of litigation or political grandstanding.

“It is the result of principled negotiation, collaboration, and a shared commitment to putting the people of South Africa first,” she said.

IFP national spokesperson Mkhuleko Hlengwa said this "victory" was a lesson for parties to be in constant communication as government, adding that no constructive conversation took place in a court of law.

“We believe that we have to return to the negotiation table. We believe that you cannot be in government today and an opposition tomorrow, whether you are in or out, for the purposes of consistency, within what we do in the Budget process and in government, so that we can be in a position to resolve problems,” he said.

PA deputy president Kenny Kunene believes that the DA has no moral authority to claim victory for the removal of the VAT increase, stating that the party was not present in engagements.

Rise Mzansi leader Songezo Zibi said he appreciated Godongwana for engaging proposals by political parties, and ensuring that National Treasury officials carefully considered the proposals.

“Political parties are sitting in courts because the maturity to sit in a room and discuss matters that relate to the Budget and the Budget only is not there. We must not succumb to misinformation and the disinformation that has happened over the last two months,” he said.

“It is very important to acknowledge the extensive amount of work that has taken place in the last number of weeks, and in the place where it can only take place, which is to stay in the room of Parliament,” said BOSA leader Mmusi Maimane.

The UDM said it was satisfied with the "bold step" taken by Godongwana to suspend the VAT hike.