ANC Secretary-General Fikile Mbalula has revealed that ActionSA is standing firm on its position that it will not support the budget process should VAT be increased.
Mbalula made these revelations today while briefing the media in Johannesburg after he was asked about the ongoing engagement of the ANC with other parties on the matter.
ActionSA was one of the political parties that voted with the ANC to pass the budget on March 12, but it was on condition that the VAT increase be scrapped and other mechanisms are sought to raise the money needed by the National Treasury. ActionSA came on board after the DA, a member of the President Cyril Ramaphosa’s Government of National Unity (GNU) refused to back the budget with VAT increase, arguing that South Africans and the economy won’t afford it.
It later turned out that the VAT was going to be increased on May 1, prompting ActionSA, led by former Johannesburg Mayor Herman Mashaba, to call an urgent meeting with the ANC which took place yesterday, April 9. Mbalula has now revealed that the party is firm on its stand on the matter.
“ActionSA is firm on the question of the VAT and in relation to it not being part of the budget going forward, that is the matter we are engaging with as we speak in terms of our negotiations and obviously we don’t run [the] Treasury.
“Different political parties have been engaging with the Minister of Finance in this regard and what is permissible in terms of that work… we would like to defer to [the] Treasury. But it is important that we allow this process to conclude and then we will answer you quite clearly and with a little bit of firmness next week,” Mbalula said.
On the issue of the GNU , Mbalula said it is not only between the ANC and the DA and would not collapse if one party walks away.
“Reconfiguration will be answered fully if a political party, two or one, walks away from the GNU… One political party walking away from the GNU does not mean the collapse of the GNU, it means you then engage in a discussion of reconfiguration. And secondly, I have explained to you and I wish to reiterate it, the ANC is committed to the government of national unity,” Mbalula said at the press conference.
