So, picture this: You’re halfway through your grocery run, your basket’s already brimming with budget-friendly trauma, and then the news drops like a potato in a no-bag zone—South Africa is hiking VAT. You look at your 2-minute noodles, your bread, your imposter cheese, and think, “They wouldn’t dare.”
Oh, but they did. And then—surprise!—they un-did. Like an ex who blocks you, unblocks you, then likes your old photo from 2019. That’s governance now, apparently.
But before we dive into this soap opera of taxation and triumph, let’s answer a pressing question for anyone who’s ever nodded at economic news without really knowing what’s going on:
What Even Is VAT?
VAT, or Value-Added Tax, is the government’s way of saying, “Thanks for buying that. We’ll just take a little off the top.” It’s a consumption tax added at each stage of the supply chain, from the producer to the checkout counter where you try not to cry.
If income tax is the government taxing you for existing, VAT is them taxing you for trying to enjoy it.
In South Africa, VAT is currently sitting at 15%. Or, as the government recently flirted with, soon-to-be-16%. Why? Because budgets are tight, Eskom needs a hug, and apparently, taxing bread eaters makes more sense than, say, fixing state-owned enterprises.
The Reversal Heard Around the Till
Finance Minister Enoch Godongwana stood in front of Parliament with the kind of confidence only someone with a spreadsheet and zero chill can muster. There was talk of fiscal holes, revenue shortfalls, and the ever-reliable “we’re all in this together” line that always feels a little rich coming from people who expense bottled water and business-class flights.
Enter: The Proposed VAT Increase. Cue national panic, think pieces, supermarket aisle rage, and memes of a crying Pikachu at the till.
But then—just when the nation had accepted its fate and was Googling “how to make your own chakalaka with wild herbs”—the government reversed the decision. Just like that. No 16%. Back to 15%. And suddenly everyone forgot to ask the most important question: “Wait… what just happened?”
The DA’s Olympic-Level Gymnastics
Now here’s where it gets truly blissfully ignorant.
The Democratic Alliance (DA), South Africa’s chief opposition-turned-co-governance partner, took to the internet with the speed of a social media intern on espresso, declaring a glorious victory. “We fought for the people,” they claimed. “We stopped the VAT hike.”
Which is adorable—because the DA is part of the Government of National Unity (GNU). That’s right, the same GNU that proposed the hike in the first place.
Let’s unpack this: you help cook a terrible stew, realise people hate it, throw it out, then announce yourself as the saviour who rescued everyone from bad food. Bold move.
But this is the world we live in now. Where opposition parties claim victories against themselves and nobody bats an eye because honestly, we’re too tired.
Wait, What’s the GNU Again?
Good question. The GNU, or Government of National Unity, is South Africa’s post-election Frankenstein. It’s like a political group project where everyone hates each other, but the marks are too high-stakes to flunk.
Born after the 2024 elections (which felt like the political equivalent of someone swiping right on every party), the GNU includes the ANC, the DA, and a buffet of other parties who collectively decided that governance should resemble a group chat with no admin.
It’s supposed to promote unity, consensus, and collaboration. But let’s be real: it mostly promotes collective blame, shared confusion, and the occasional DA press release trying to convince us they’re still rebels with a cause—even as they sit at the same table as the chefs cooking national policy.
So… Why Was the VAT Hike Reversed?
Let’s be clear: It wasn’t reversed because the DA threw a tantrum. It was reversed because:
- Public backlash was fierce. Nobody wants to pay more to be poor.
- Election wounds are still fresh. The ANC might be fumbling, but they can still count seats.
- It’s a terrible look. Hiking VAT in a cost-of-living crisis is like asking someone drowning to pay for the water.
In short, the reversal wasn’t victory. It was damage control. The kind that comes right before another round of “belt-tightening” where, somehow, only the poor wear belts.
Final Thought: “Winning” in a Unity Government Is Just Arguing With Your Own Reflection
Look, we love a good political drama. But when parties like the DA claim victory over policies they’re co-signing, it starts to feel like we’re living in a Monty Python skit.
The VAT story isn’t about heroic governance—it’s about economic pressure, PR survival, and the delicate dance of trying to seem like the good guys when you’re wearing the same tracksuit as the villains.
So next time someone in a GNU suit and tie says, “We saved you,” maybe ask them, “From what, exactly? Yourselves?”
Stay blissful, stay informed, and remember—sometimes the satire writes itself.
Want to rage-tweet this into the void or pretend to laugh through the tears? Share it with your group chat, your taxman, or your favourite politician-turned-influencer.