ActionSA saves the day! No more VAT hike for citizens

by Nomonde Simelane

Herman Mashaba’s ActionSA have been hailed as the heroes of the day after negotiating with the African National Congress (ANC) to play a significant role in shaping the outcome that led to no value added tax (VAT) hike for citizens.

Recently, South Africa’s leaders and government have been hard at work as the Government of National Unity (GNU) navigates what is the best course of action to take as far as the budget presented by the minister of finance Enoch Godongwana. This budget has been a great source of conflict, as the members that form the GNU have struggled to reach common ground, as some agreed with the minister, while some voiced concerns on the burden the proposed budget would pose on citizens.

Coming in to save the day as the budget deadline fast approached, Herman Mashaba’s ActionSA shifted its approach and proposed an amendment to the fiscal framework. This amendment proved to be significant as it aimed to offset the R28 Billion shortfall and avoid the tax increases. It included a condition that orders the National Treasury to identify alternative revenue sources and expenditures within 30 days.

As ActionSA gladly welcome and takes the credit for this victory, the Democratic Alliance (DA) has expressed frustration and has accused ActionSA of “selling out” taxpayers by opting to align with the ANC. John Steenhuisen’s party believes that Herman Mashaba’s side is taking undue credit for a resolution that preserves the ANC’s power rather than challenging it.

As expected, this move has made matters quite tricky for the DA, as ActionSA have put them in a tight spot in the GNU, leaving them with little to no room to maneuver and negotiate. Their refusal to compromise has left them quite isolated among the GNU partners, as their threat to derail the GNU did not materialise, partly thanks to ActionSA’s amendments.

Also see: “The DA will oppose the budget!”- GNU struggles to find common ground