ActionSA, ANC to meet this week but budget talks ‘so far so good’ - Beaumont

ActionSA says their every interaction with the African National Congress (ANC) shows that they are committed to reserving the 0.5% Value Added Tax (VAT) increase as per their agreement.

ActionSA national chairperson Michael Beaumont told IOL that budget talks have been promising, clarifying that the focus was on what legislative process would be required to collapse the VAT hike.

The two parties have engaged in negotiations on how tax hikes should be scrapped to ensure that already financially crippled citizens do not suffer the consequences.

The ANC has also met with other political parties in and outside the Government of National Unity (GNU) who are against VAT.

Beaumont said his party was focused on ensuring this process succeeds to the benefit of the South African people who are facing a budget crisis caused by parties in the GNU using the national budget as a bargaining tool for more power for themselves in government.

“The discussions between the ANC and ActionSA continue to demonstrate a commitment to reversing the VAT increase. The focus on the discussions is not if this will be reversed, but rather when and through what legislative process,” he said.

ActionSA supported the ANC in passing the 2025 budget in Parliament.

ActionSA will again meet with the ANC this week to ensure that their deal of scrapping VAT is still in place.

However, Beaumont said if the ANC failed to deliver on the promise, then they would have to review the agreement.

This is despite President Cyril Ramaphosa revealing that the ANC and the Treasury were finding difficulties in reversing the VAT.

The agreement between the ANC and ActionSA included that the VAT increase be scrapped in 30 days. It also included inflation adjustments for personal income tax to prevent bracket creep.

ActionSA also said it would only consider joining the GNU if the VAT hike was dropped.

kamogelo.moichela@iol.co.za

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