Anc And Actionsa Renew Commitment To Stop Vat Increase - But Insist No Gnu Talks Yet

ActionSA and the African National Congress ANC have renewed their commitment to stop a value added tax VAT increase from coming into effect on 1 May 2025.

The two parties held talks on Wednesday 9 April - but insisted that they did not discuss a potential reconstitution of the government of national unity GNU.

ActionsAs six votes in Parliament were crucial in passing the budgets fiscal framework last week. Prior to the vote, it met ANC and agreed to explore alternatives to a VAT increase before 1 May.

On Tuesday, the ANC announced that it would consult all parties on budget-related matters. Wednesdays meeting with ActionSA was the first and was attended by ANC Secretary-General Fikile Mbalula and ActionSA leader Herman Mashaba.

The ANC and ActionSA both reaffirmed the necessity of identifying viable alternatives to the proposed VAT increase, with a mutual commitment to avoid any such adjustment before 1 May 2025, the ANC said in a statement .

The discussion was firmly anchored on the fiscal framework and budgetary issues. Nothing beyond that was tabled.

ActionSA was similarly keen to prevent speculation.

No discussion of any kind took place regarding a reconstituted GNU. At ActionSA's insistence, discussions were limited exclusively to the fiscal framework and the budget, it said in its own statement .

The ANC announced on Tuesday that it would seek a reset within the GNU in addition to its engagements with political parties outside the coalition.

This has sparked speculation that it has opened the door for other political parties to join the GNU, with the exit of the Democratic Alliance DA still possible.