South Africa: 'Actionsa Won't Entertain Coalition Discussions Until Tax Increases Scrapped' - Party Chair Michael Beaumont

ActionSA provided crucial support to the ANC to pass the Budget's fiscal framework after talks with the DA collapsed, threatening the future of the government of national unity. ActionSA national chairperson Michael Beaumont says the party was not played and is not seeking positions in a restructured government of national unity, at least not until the VAT increase is scrapped.

ActionSA provided crucial support to the ANC to pass the Budget's fiscal framework after talks with the DA collapsed, threatening the future of the government of national unity. ActionSA national chairperson Michael Beaumont says the party was not played and is not seeking positions in a restructured government of national unity, at least not until the VAT increase is scrapped.

Daily Maverick: ActionSA supported the Budget on the condition that further engagements would take place within 30 days to explore alternatives to the proposed 0.5 percentage point VAT increase. Have you prepared for the eventuality that this does not happen?

Michael Beaumont: The VAT Act of 1991 prescribes that VAT goes up on the date announced by the minister in his Budget speech (which was 1 May 2025), irrespective of what transpired in Parliament last week.

ActionSA supported the passage of the fiscal framework with conditions for the VAT increase and income tax bracket creep to be removed, because this was the best path to preventing a 1 May increase. Those who advocated for amendments would have seen the process set back weeks, with no prospect of removing the increases by 1 May 2025, because they have treated our...

AllAfrica publishes around 500 reports a day from more than 110 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.