Herman Mashaba to ANC: No deal on GNU until VAT and Tax hikes are gone!

GNU

Johannesburg — ActionSA has responded to media reports suggesting the ANC’s National Working Committee (NWC) is considering reconfiguring the Government of National Unity (GNU), saying that they will not entertain such a proposal until key tax issues are resolved, specifically the VAT increase and income tax bracket creep.

ActionSA leader Herman Mashaba confirmed that, despite media reports suggesting a shift towards including ActionSA in the GNU following the ANC’s National Working Committee (NWC) meeting, the party had not received any formal communication from the ANC regarding the matter.

“ActionSA has noted media reports arising from the ANC’s National Working Committee (NWC) meeting held last night which suggests a move to reconstitute the GNU to include ActionSA.

“ActionSA affirms that the party will not give any consideration to this proposal until the VAT increase and income tax bracket creep have been resolved,” Mashaba said in a statement on Tuesday.

The party’s stance comes after it initiated discussions with government officials to address concerns around the 1% VAT increase and the impact of income tax bracket creep on South African taxpayers.

Mashaba reiterated that ActionSA had been proactive in advocating for solutions to the current fiscal issues, submitting revenue alternatives exceeding R100 billion to mitigate the proposed tax hikes.

“ActionSA took the responsible step to end the budget impasse and protect South Africans from their national budget being used as a political football, on the strict condition that both the VAT increase and income tax bracket creep are removed.”

For now, Mashaba made it clear that ActionSA will remain firm in its commitment to addressing these tax-related issues before considering any broader political discussions.

“Following the approval of ActionSA’s recommendations in this regard, a process has been initiated to assess revenue alternatives that would allow for the removal of these increases. Over the weekend, ActionSA made submissions of revenue alternatives exceeding R100 billion in this regard,” said mashaba.

“For ActionSA, the removal of these increases alone is the focus of our engagements with other parties and the party would not consider any other matter until such time as these matters are addressed to the satisfaction of South Africans.”

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