ActionSA leader Herman Mashaba has stated that the party will not consider joining the Government of National Unity (GNU) unless the proposed Value Added Tax (VAT) increase is withdrawn. Despite supporting the African National Congress (ANC) in passing the fiscal framework in Parliament, Mashaba emphasized that addressing the VAT hike and income tax bracket adjustments is a prerequisite for any further political engagement.
The VAT rate is set to increase to 15.5% in May, a move that ActionSA opposes. The party has submitted alternative revenue proposals to Finance Minister Enoch Godongwana, suggesting potential generation of R100 billion without increasing VAT. Mashaba reiterated that ActionSA’s primary focus remains on preventing the VAT increase to protect South African citizens from additional financial burdens.
While the ANC has not formally invited ActionSA to join the GNU, Mashaba stated that the party remains open to constructive engagements to resolve the budget impasse. He emphasized that ActionSA would not consider any further political steps until the VAT increase and related tax matters are satisfactorily addressed.
