ActionSA leader Herman Mashaba said they will not agree to joining the Government of National Unity if VAT increase is not scrapped.
Image: Itumeleng English/Independent Newspapers
ActionSA has responded to recent media reports suggesting the ANC's National Working Committee (NWC) plans to reconfigure the Government of National Unity (GNU) by saying they will not entertain this idea until the VAT increase is reversed.
In a statement, party leader Herman Mashaba affirmed that for them to even consider the proposal, critical tax issues, including the VAT increase and income tax bracket creep, should be resolved.
Mashaba emphasised that, despite the media reports, no official communication has been received from the ANC regarding this matter.
However, he said the party was open to constructive dialogue, particularly surrounding the ongoing budget deadlock.
“ActionSA took the responsible step to end the budget impasse and protect South Africans from their national budget being used as a political football, on the strict condition that both the VAT increase and income tax bracket creep are removed,” he said.
Mashaba’s remarks come after ANC President Cyril Ramaphosa revealed that the Treasury was finding it difficult to find alternatives to reverse the 0.5% VAT increase following an agreement with ActionSA to support the 2025 Budget.
But Ramaphosa said they will continue to engage with the parties to find a more suitable solution for all.
In line with this, ActionSA has already submitted proposals offering over R100 billion in alternative revenue options to offset these tax increases.
The party remained steadfast that these tax changes must be scrapped before it engages on any other issues, stressing that the focus of all discussions will remain on the financial burden placed on South Africans.
Until these concerns are adequately addressed, ActionSA will not entertain any other political negotiations, Mashaba stated.
The ANC NWC met at Luthuli House on Monday to decide on the Democratic Alliance’s future in the GNU after its ministers refused to vote in favour of the budget.
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