DA not backing down on VAT despite ANC opening talks

The ANC and DA are far from over the ongoing standoff and face-off, with the DA insisting it will not stoop to the level of VAT hikes despite the ANC's open arms and willingness to hold talks with various groups, including the DA, on the issue.

This follows ANC Secretary-General Fikile Mbalula's announcement that the ANC's executive committee has decided to hold talks with both GNU and non-GNU parties, including the DA, on the issue of passing some budget items.

Mbalula said they have given themselves five days to do the work of persuading parties to support them in passing the remaining items.

He said that even if the DA leaves the GNU, it will not bow down or end with the GNU.

"We are currently focused on negotiating with other parties to pass other parts of the budget. It is up to the DA to tell the people of this country why it is staying in the GNU because it did not support the budget. It is like the people who expelled themselves from the GNU, but the ANC will not speak or dictate to the DA what it should do regarding its future in government," said Mbalula speaking to the media yesterday at Luthuli House, Johannesburg, after a meeting of the party's top leadership and the committee responsible for day-to-day operations.

Mbalula said laws such as the controversial schools, Bela, land acquisition without compensation and others are not going anywhere. 

On the other hand, DA leader John Steenhuisen said they are willing to return to talks with the ANC, but are not backing down from repealing the 0.5% VAT increase.

"We will not change our minds about repealing the VAT increase in this country because we still stand by the reason we are part of the GNU, which is to grow the economy and create jobs. Voters have made it clear that no single party should decide where the country is going," he said. 

The DA has gone to the Western Cape High Court, seeking a stay on the VAT increase from next month.

Mbalula said they know they did not win the election by a landslide, they do not need to be reminded of this.

"If the court dismisses the government on the VAT issue, an application will be made to review that decision. We know that many parties in government, some not even in government including Cosatu, SACP and others in the ANC are not in favour of the VAT increase. That is why we want to discuss the VAT issue at this time," said Mbalula.

Regarding why they are still persuading the DA to be part of the GNU when it did not vote to support the budget, Mbalula said they did not persuade it as there are those who say it should go.

"There are many who say it should go within the ANC. Not because we stand by it in the GNU, as I said it can go, it will not be pushed by the ANC."

He said what they are doing is for the people of this country, because they do not want the country to fall apart.

"Like in the American case, we will go and tell the trade story because we need America. We will not say we don't need it because we only have a national identity, we need the country to survive."