ActionSA formally informs ANC it won’t support budget

CAPE TOWN - ActionSA has formally informed the African National Congress (ANC) that it won’t support the budget, making its passing even more tricky for the ANC.

ActionSA joins other parties that have indicated their rejection of the budget in its current form, which includes a 0.5% point value-added tax (VAT) increase proposal.

ActionSA made its final decision in a letter to the ANC’s task team negotiating the passing of the 2025/26 budget tabled earlier in March.

ActionSA said its decision followed a cordial meeting between the two parties on Friday.

It came to light during the meeting that the party made itself available to listen to the ANC’s proposals as a “constructive opposition party”.

ActionSA’s chairperson, Michael Beaumont, said in their letter to the ANC, they conveyed the view that the proposed increases in both VAT and income tax cannot be supported.

He added the government has failed to address wastage and inefficiencies.

“ActionSA cannot impose tax increases on South Africans to support those in the GNU [Government of National Unity] who are notionally opposed to these increases yet continue implementing them at the expense of South Africans.”

Losing ActionSA’s support means the ANC will have to convince bigger parties like the Democratic Alliance (DA) for support and also avoid having to lobby the Economic Freedom Fighters (EFF) or the uMkhonto weSizwe (MK) Party.