ANC may drop VAT hike amid coalition opposition

THE ANC is expected to abandon its push for a Value Added Tax (VAT) increase in the upcoming Budget, following intense opposition from its coalition partners in the Government of National Unity (GNU) and other political parties.

- MASHUDU SADIKE

This decision comes after a series of meetings between the ANC and various parties, including the DA, where it became clear that there would be little to no support for the VAT hike.

The DA and ANC met on Saturday to discuss the ongoing Budget impasse in South Africa, aiming to find a solution to the country’s fiscal crisis. Although both parties described the discussions as constructive, the DA remains resolute that it will not back a VAT hike.

The ANC recently passed the budget in the National Assembly with assistance from smaller parties in the GNU, including ActionSA and Build One South Africa (Bosa), after the DA and the Freedom Front Plus voted against the ANC's Budget proposal. However, ActionSA and BOSA were also adamant that they did not support a VAT hike, and Finance Minister Enoch Godongwana had to find alternatives to contribute to the country’s fiscus.