DA Denies Secret VAT Deal as Godongwana Alleges Opposition Backed Tax Hike in Exchange for Scrapping Expropriation Bill

Finance Minister Enoch Godongwana has stirred a political storm by claiming that the Democratic Alliance (DA) secretly agreed to support a Value Added Tax (VAT) increase in return for President Cyril Ramaphosa abandoning the contentious Expropriation Bill. The allegation, made during a heated parliamentary debate, has triggered a fierce backlash, with opposition parties accusing the ANC of deceptive tactics and undermining public trust.

Godongwana asserted that the DA sent a formal letter to Ramaphosa, offering to back a VAT hike—a move that would disproportionately affect low-income households—on condition that the government drop the Expropriation Bill. The bill, which permits land expropriation without compensation in certain cases, has been a polarizing issue, with the ANC framing it as essential for redressing apartheid-era land injustices, while the DA warns it threatens property rights and economic stability.

The DA has vehemently denied the allegations, with party spokesperson Solly Malatsi dismissing them as an “ANC smear campaign.”
“There is no such agreement—our position on VAT has always been clear: it hurts the poor. The ANC is desperate to divert attention from its disastrous economic policies,” Malatsi said.

The revelation, if true, would mark a stunning reversal for the DA, which has long opposed both VAT increases and the Expropriation Bill. Critics argue that such backroom negotiations—if they occurred—would betray voters and erode democratic transparency.

The Economic Freedom Fighters (EFF) have seized on the controversy, demanding Ramaphosa release all related correspondence. “If this deal is real, it proves the ANC and DA are playing games with people’s lives,” said EFF leader Julius Malema.

Economic and Electoral Implications

A VAT hike would add pressure to already strained households, still reeling from the 2018 increase to 15%. Analysts warn that further tax burdens could deepen poverty and fuel discontent ahead of the 2024 elections.

With both the ANC and DA under scrutiny, the scandal raises critical questions:

• Is Godongwana’s claim a political ploy to weaken the DA?
• Or is there truth to allegations of behind-the-scenes bargaining?

As the controversy escalates, South Africans are left questioning whether this is a case of ANC misdirection or evidence of a broken opposition. One thing is certain—the battle over VAT and land reform will dominate the political agenda in the weeks to come.