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We stopped the VAT hike - now we're coming for stagnation


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We stopped the VAT hike - now we're coming for stagnation

12th June 2025

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The DA supports the 2025 Fiscal Framework because it reflects some critical breakthroughs for ordinary South Africans. But we are under no illusions. This is not a moment for celebration. It is a moment to push even harder for real economic reform that streamlines government, creates jobs and delivers growth.

Thanks to the DA’s firm stance in government, a VAT increase that would have hurt every South African household was stopped in its tracks. We’ve also secured billions in infrastructure investment, a commitment to root out ghost workers and an urgent review of government spending. These represent real breakthroughs that protect both the poor and the economy.

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But they are not enough.

South Africa’s economy is optimistically projected to grow at just 1.4%. That’s nowhere near what we need to put millions of unemployed South Africans to work. Our economy should be growing at 5% or more. That’s the DA’s focus. Not just surviving another budget, but building a thriving economy.

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We’ve made it clear: no more tax hikes on the struggling public. We will fight for the kind of economic reforms that fix our ports, tackle load-shedding and end wasteful spending. We’ll keep asking tough questions about broken entities like the SETAs. We’ll keep showing up to fight for change - even when others would rather we walked away.

The DA believes that growth and jobs go hand in hand. You can’t lift people out of poverty without growing the economy. And you can’t grow the economy if government keeps punishing productivity and protecting inefficiency.

This framework is a start, but South Africa deserves more. We need bold reforms that attract investment, encourage entrepreneurship and unlock opportunity, especially for young people.

We stopped a VAT hike. Next, we’re going to work to stop economic stagnation. Growth and jobs are our mission and we won’t rest until every South African feels the change in their pocket, not just in Parliament speeches.

The DA is fighting for a government that grows the economy, not just the debt. And we’re just getting started.

 

Issued by Dr Mark Burke MP - DA Spokesperson on Finance

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