South Africa's Democratic Alliance Challenges VAT Hike in Court

The Democratic Alliance, South Africa's pro-business party, has filed a court case against the legality of the budget process. They aim to block a VAT increase, citing procedural flaws and potential negative impacts on the poor. Coalition stability is threatened as the DA may reconsider its alliance.

South Africa's Democratic Alliance party is taking a legal stand against the nation's proposed budget, aiming to halt a contentious increase in value-added tax. The pro-business party claims procedural misconduct and fears detrimental impacts on poorer communities.

The court case mounts further tension within the fragile coalition government, where the biggest party, the African National Congress, narrowly passed the budget's revenue plans. Division among coalition members exacerbates uncertainties.

Amid growing market concerns, the Democratic Alliance is contemplating its future in the coalition, and Chairperson Helen Zille underscores their resolve to prevent the tax hike before implementation begins on May 1.

(With inputs from agencies.)