Cyril Ramaphosa Admits Finding VAT Alternative Is Difficult, President Says ANC Looking at All Means

• President Cyril Ramaphosa admitted that finding an alternative to the Value-Added Tax (VAT) hike is difficult
• ActionSA supported Enoch Godongwana's budget proposal, provided that he found an alternative within 30 days
• The budget speech has caused division among members of the Government of National Unity

Briefly News journalist Byron Pillay has dedicated a decade to reporting on the South African political landscape, crime, and social issues. He spent ten years working for the Northern Natal Courier before transitioning to online journalism.

GAUTENG - The saga surrounding the 2025 budget may not be over just yet.

The fiscal framework was adopted by the National Assembly on Wednesday, 2 April 2025, with ActionSA supporting the African National Congress (ANC) on one condition.

Herman Mashaba’s party pledged its support to the budget provided that the ANC find an alternative to the 0.5% Value-Added Tax (VAT) increase, something Cyril Ramaphosa said may not be possible.

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President Ramaphosa discusses ANC scrapping VAT

With ActionSA giving the ANC 30 days to find an alternative means to raise the R28 billion the party was hoping to bring in from the VAT hike, President Ramaphosa admitted that it may not be possible.

Speaking at an ANC event in Johannesburg on Sunday, 6 April, the president said the Treasury was busy attempting to find alternatives to increase, but admitted it wasn’t easy.

“In the end, we will look at ways and means of seeing whether that is possible or not.

"From the current examination, Treasury has said having looked at various areas where they can look, it doesn’t seem to be so,” Ramaphosa noted.

He added that proposals from the various parties were being taken seriously.

Budget strains relationships within Government of National Unity (GNU)

The adoption of the budget, albeit with conditions, has caused strain within the Government of National Unity (GNU). The Democratic Alliance (DA) rejected the proposals put forth by Finance Minister Enoch Godongwana, causing tensions with the ANC.

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President Ramaphosa stated that the party couldn’t be in the GNU and also act like the opposition, saying they needed to make a choice.

ANC Secretary-General Fikile Mbalula also warned that the GNU could be reconfigured as the DA were on the outskirts due to their actions.

The party itself has confirmed that it was discussing its role within the government. Party leader John Steenhuisen confirmed that the party’s Federal Executive would decide whether it would remain in the GNU or leave.

ActionSA is willing to step up in government

With ActionSA stepping up to support the ANC when the DA failed to do so, Mashaba admitted that his party would join the government if they were asked.

This was despite previous statements he made that he would never work with the ANC, not even in 300 years.

ActionSA has also been critical of the very same government, stating that it was happy in its choice not to join the GNU at the time of its inception.

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ActionSA promises to hold ANC responsible

Briefly News reported that ActionSA promised it would hold the African National Congress (ANC) accountable.

Mashaba's party agreed to support the ANC’s budget on condition that it scrap the Value-Added Tax hike in 30 days.

The party has now promised to withdraw its support if the ANC doesn't keep its promise to scrap the VAT hike.

Source: Briefly News