ANC dismisses suggestions that disputes around proposed VAT increase pose a threat to GNU stability
The party is still trying to convince GNU partners to vote for the adoption of Enoch Godongwana’s budget in parliament, which makes provisions for a 0.5% vat increase.
Finance Minister Enoch Godongwana delivered the national budget for 2025 in the National Assembly on 12 March 2025. Picture: Phando Jikelo/Parliament
JOHANNESBURG - The African National Congress (ANC) has dismissed suggestions that disputes around the proposed Value-Added Tax (VAT) increase pose a threat to the stability of the Government of National Unity (GNU).
The party is still trying to convince GNU partners to vote for the adoption of Enoch Godongwana’s budget in parliament, which makes provisions for a 0.5% VAT increase.
The ANC’s National Executive Committee (NEC), which met at the Birchwood Hotel in Boksburg on Saturday, has been discussing the budget.
The Government of National Unity has been divided by several issues since its establishment last year, including the national health insurance, the BELA Act and the Expropriation Act.
Godongwana’s 0.5% Value-Added Tax increase has further divided the unity government, with the Democratic Alliance (DA) having strong reservations on this proposal.
Asked whether the proposed VAT increase will be the straw that breaks the camel’s back, ANC NEC member Kgosientsho Ramokgopa said he doesn’t believe this will collapse the government of national unity.
"We are invested in the GNU because it's our own creation. We are the ones who put it together. If in the calculation of other members in the GNU that this is a red-line, I’m sure they’ll make their own determination," said Ramokgopa.
On Sunday is day three of the ANC NEC’s four-day meeting and discussions around the budget will continue behind closed doors.