ActionSA Rejects Proposed VAT Hike, ANC Running Out of Working Partners Ahead of 3 April Deadline
- ActionSA has informed the African National Congress (ANC) that it won't support the budget in its current form
- ActionSA met with the ANC to go over its proposals but could not agree with the proposed Value-Added Tax (VAT) hike
- The Finance Minister has until 3 April to pass the budget, but the ANC are running out of allies to work with
Source: Getty Images
Briefly News journalist Byron Pillay has spent a decade reporting on the South African political landscape, crime and social issues. He spent 10 years working for the Northern Natal Courier before transitioning to online
GAUTENG – The African National Congress (ANC) has lost another ally in its quest to get the 2025 budget approved.
Herman Mashaba’s ActionSA has officially announced that it won’t support the budget in its current form as tabled by Finance Minister Enoch Godongwana on 12 March 2025. The proposed budget contains a 1% Value Added Tax (VAT) hike over two years, something many parties objected to.
ActionSA meets with ANC to discuss budget
With the Democratic Alliance stating that it would not support the budget as long as there was a VAT hike, the ANC was forced to speak to parties outside the Government of National Unity.
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As a result, the party met with Herman Mashaba’s movement, engaging with them in a meeting held on Friday, 21 March. ActionSA met with the ANC to listen to its proposals as a ‘constructive opposition party’.
ActionSA tells ANC it can’t support VAT increase
After deliberating on the meeting, ActionSA has now come out to formally inform the ANC that it won’t support the budget in its current form. Party chairperson Michael Beaumont noted that it was the party’s view that the proposed increases in VAT and income tax could not be supported.
Beaumont added that the government also failed to address other key issues like wastage and inefficiencies.
“ActionSA cannot impose tax increases on South Africans to support those in the GNU who are notionally opposed to these increases yet continue implementing them at the expense of citizens,” Beaumont stated.
Source: Getty Images
ANC running out of working partners
With ActionSA and the DA flat out rejecting the budget in its current form, the ANC has been forced to seek support from other parties.
The United Democratic Movement (UDM), Inkatha Freedom Party (IFP) and Patriotic Alliance (PA) stated they would back the budget, but they don’t make up a lot of seats in cabinet.
The ANC could turn to the Economic Freedom Fighters or the uMKhonto weSizwe (MK) Party for backing, but both parties have also voiced frustration with the VAT increase. Julius Malema stated that they would not support an increase of any kind, while the MK Party stated it would bring the country to a standstill if the Minister included any VAT increase. The ANC has until 3 April to pass the budget.
SA weighs in on ActionSA’s statement
South Africans praised the party for taking a stand against the increase, labelling it a good move.
@zandy_thabethe said:
“This party is looking more and more attractive by the day.”
@UnityInSA stated:
“That is the correct stance by ActionSA. Any party that supports the VAT increase needs to be punished in the next election.”
@nkabindenm said:
“Great move. ANC needs to be removed in the society.”
Jt Goba added:
“Well done, Mashaba.”
@nomadic_msft exclaimed:
“Wow, no further flip-flopping. I am impressed.”
ANC in talks with opposition parties
Briefly News previously reported that the ANC was in discussion with parties to pass the budget.
Fikile Mbalula confirmed that the party was speaking to other organisations not in the GNU.
The Secretary-General of the ANC also hit out at the Democratic Alliance after the party stated it wouldn't support the budget.
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Source: Briefly News
