Da Slams Anc-actionsa Alliance Over Vat Hike Betrayal

On April 1, 2025, the Democratic Alliance DA criticised ActionSA for collaborating with the African National Congress ANC to approve a 1 increase in Value-Added Tax VAT over the next two years, arguing that this decision will exacerbate the financial burden on South Africans, says the DA.

The DA highlighted its efforts to negotiate a budget aimed at fostering economic growth, creating jobs, reducing governmental waste, and preventing VAT hikes. However, the party contends that these objectives were undermined by the alliance between the ANC and ActionSA, which led to the adoption of a budget lacking the necessary reforms.

The DA expressed concern that this budget approval permits the ANC to continue government spending without proper review, potentially harming the nations economy.

Furthermore, the DA accused ActionSA of going back on its public commitment to oppose the ANCs VAT proposal, labelling this reversal as a betrayal of South Africans who cannot afford the increased tax burden. Initially, ActionSA had publicly committed to opposing any VAT hikes, aligning with its core mission to protect South Africans - particularly low-income households - from added financial strain.

The DA also criticised the ANC for securing budget approval through a party outside the Government of National Unity GNU, viewing this move as a breach of established protocols.