Herman Mashaba Slams Anc's 'misinterpretation' Of Budget Vote As Differences Emerge

ActionSA leader Herman Mashaba has called on the African National Congress ANC to correct its misinterpretation of the budgets fiscal framework report adopted by Parliament on Wednesday 2 April.

He was responding to an ANC statement that seemingly suggested that a 0.5 percentage-point increase in value added tax VAT is confirmed.

The adjustment of VAT by 0.5 was a difficult decision, done transparently and with a firm commitment to cushion the poor through expanded zero-rated goods and targeted support for indigent households, the ANC said.

In a statement on Wednesday, ActionSA said the VAT increase was not approved by Parliaments standing committee on finances report, which the National Assembly adopted along with the fiscal framework.

It also did not approve the removal of inflation adjustments for personal income tax brackets.

Instead, the committee will have 30 days to develop alternative proposals to raise the R19 billion in personal income tax and R13 billion in VAT that these measures would have generated, ActionSA said.

In a post on X on Thursday, Mashaba took exception to the ANCs suggestion that the VAT increase is a done deal.

I hope the ANC communication team knows and understand what they voted for on Tuesday in the Finance Committee and in Parliament yesterday, he wrote.

We hope they will urgently correct this misinterpretation of the Fiscal Framework Report presented and voted in Parliament yesterday.

To add to the confusion, ANC member of Parliament Khusela Diko appeared to share ActionSAs view.