Opposition parties have rejected Finance Minister Enoch Godongwana’s Budget speech, with the Government of National Unity (GNU) partner the Democratic Alliance (DA) stating outright that it would not support an increases in taxes.

Godongwana tabled his delayed Budget on Wednesday that included lower, yet still controversial, increases to the value added tax (VAT) rate, as he sought to hold the fiscal-consolidation line amid rising spending pressures.

The new proposal involves increasing the VAT rate by 0.5 percentage points in 2025/26 to 15.5% and by 0.5 percentage points in 2026/27 to 16%, rather than the immediate two percentage point hike to 17% proposed in the aborted Budget of February 19.

The DA blamed its GNU partner the African National Congress (ANC) for “sacrificing” South Africans and “risking” the economy with the proposed Budget.

DA leader John Steenhuisen said his party will not support this budget in its current form, vowing to continue fighting for economic growth and jobs.

“The DA made it clear to the ANC in the GNU that we would not support any increase in taxes, unless those increases were temporary, and 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,” he said.

He pointed out that the ANC refused to agree to these measures, and instead insisted on two likely permanent VAT increases, which he said cumulatively will increase VAT by 1% over the next 2 years.

“…as a consequence, the people of South Africa will be poorer, and the future of the government is at risk. 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,” he stated.

ActionSA MP Alan Beesley said his party "unequivocally rejected" the proposed 1% point increase in VAT—0.5% point this year and 0.5 next year—as well as the "hidden tax increase" caused by the failure to adjust personal income tax brackets for inflation.

Beesley pointed out that these measures will “quietly extract more from hardworking South Africans while State corruption, mismanagement, and waste continue unchecked under the coalition government.”

“While VAT may be the most efficient of the major taxes, it disproportionately harms the poor. At the same time, the refusal to adjust tax brackets for inflation amounts to a stealth tax—pushing ordinary workers into higher tax brackets without an actual salary increase. The result? South Africans are expected to pay an additional R18-billion simply to bankroll government waste, failed policies, and corruption,” he stated.

Build One South Africa leader Mmusi Maimane said his party rejected the idea of VAT increase, calling for a growth plan.

“I think South Africans are going to be double taxed, it’s on VAT but also on personal tax, you are asking teachers, nurses, lawyers all citizens to now pay more tax.

“…we are obviously clear the fact that today there was no prioritisation of cutting expenditure so that you can fund growth. Funding growth is about increasing the infrastructure making sure it is efficient,”

Meanwhile, the Economic Freedom Fighters (EFF) said that Members of Parliament (MPs) have the power to not only reject the budget, but to amend it.

“Members of Parliament, across party lines, must not only reject the tabled Budget but also empower the Standing Committee on Finance to amend the proposed fiscal framework and revenue proposals,” it said.

The party said Parliament was not “at the mercy” of the Minister of Finance and the National Treasury.

“…especially when it is evident that their fiscal approach is reckless and clearly fails to appreciate the conditions facing the poor and the working class,” it said.

The uMkhonto weSizwe Party (MKP) demanded an immediate shift to an “expansionary People's Budget” that prioritises people over profits, development over debt, and “sovereignty over submission to neoliberal and imperialist dictators”.

The party highlighted that the MKP People's Budget is a serious departure from the ANC/DA regime's “disastrous austerity,” which it said has bled the economy dry and left millions in poverty.

The MKP promised to establish and fund a comprehensive social security system that guarantees employment with wages above R4 500 for those able and willing to work, alongside skills development and training.

“A Basic Income Grant of no less than R1 558 will uplift the unemployed, while Child Support Grants will increase to R760, and old-age and disability pensions will rise to R4,500 to restore dignity to the vulnerable. Homelessness will be eradicated with well-resourced shelters, rehabilitation programs, and employment initiatives, ensuring no South African is left behind,” it promised.

The MKP said that “the ANC/DA regime” has not finalised a medium-term development plan.

“…and yet, in an act of reckless incompetence, the Minister of Finance proceeded to deliver a budget that increases VAT, without a credible economic roadmap. What informed these budget figures and tax proposals, if not a desperate thumb-suck and a deep hatred for poor Black people?” the party said.