ANC PONDERS BACKING DOWN ON VAT HIKE

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.

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The 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 with the aim of finding a solution to the country's fiscal crisis and although both parties described the discussions as constructive, the DA remains resolute that it will not back a VAT hike.

The ANC was able to pass the budget in the National Assembly recently with the assistance of 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.

But 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.

A senior ANC member who was part of the series of meetings with other parties, admitted that the party had failed to convince others to support the VAT hike, saying that all the parties vehemently opposed the VAT hike.

"If we are going to keep the GNU going and not alienate other organisations I think it's time we listen...we can't go at it on our own. It's time we realise that we are in the GNU with other parties that also have opinions. However they have to come up with solutions to the problems they bring."