ActionSA has announced it will not engage in discussions regarding the Government of National Unity (GNU) unless the proposed increase in value-added tax (VAT) is revoked.
The South African government recently confirmed plans to raise the VAT rate from 15.0% to 15.5%, effective May 1, 2025, with a further increase to 16.0% scheduled for April 2026.
ActionSA’s statement comes amidst growing concerns about the future of the GNU, following the Democratic Alliance's (DA) opposition to the government's fiscal policy framework last week. The DA is the African National Congress’s (ANC) largest partner in the GNU, and its rejection of the proposed tax hikes has raised doubts about the unity of the coalition.
Michael Beaumont, Chairperson of ActionSA, emphasized the importance of a strong opposition. "We are saying we are not available to the GNU until such time as the tax increase is scrapped," Beaumont stated. "South Africa needs a stronger opposition. Opposition parties have abandoned that space in the pursuit of government, and that is why we play the role that we do. It would be difficult to see how the GNU, with 70% of parties in Parliament, would further assist the process."
ActionSA’s decision highlights its commitment to challenging the proposed tax increases and reinforcing the role of opposition parties in South Africa's political landscape.