Gnu On Thin Ice As Actionsa Issues Vat Ultimatum

ActionSA has put its foot down, warning it may walk away from the government of national unity GNU if the DA pulls out or gets the boot - and if the VAT hike isnt reversed as promised.

Following the National Assembly's budget vote, ActionSA's leaders held a press conference where they made it clear: their support for the GNU is not unconditional. The party's chief whip, Athol Trollip, stressed that ActionSA won't blindly stay in government if key partners like the DA depart or if promises made during budget talks are broken.

'If the DA exits, we'll have to re-evaluate our involvement. But that decision hinges on the VAT situation being resolved first,' said Trollip.

Although theres been no formal discussion about reworking the GNU's structure, political whispers are growing louder. Reports from Times Live suggest the DA is already preparing to exit the unity government, with leader John Steenhuisen allegedly huddling with ministers to map out an exit strategy. Fuel was added to the fire when leaked audio caught President Cyril Ramaphosa saying talks with ActionSA were more fruitful than with the DA during budget negotiations.

ActionSA's influence was evident in the recent budget outcome, with their proposal to reverse the 0.5 VAT increase and pause inflation adjustments on income tax gaining support in Parliament - a move the party says will protect citizens from unfair financial burdens. In response, Parliament has been given 30 days to devise alternative ways to fill the resulting revenue gap.