Thabiso Goba7 April 2025 | 5:54

ActionSA confident it's presented viable plan to Godongwana to enable govt to raise revenue without hiking VAT

The party is adamant it will be able to reverse the 0.5 percentage point increase to VAT, which kicks in on 1 May.

ActionSA confident it's presented viable plan to Godongwana to enable govt to raise revenue without hiking VAT

ActionSA's parliamentary caucus held a press briefing at Parliament in Cape Town on 3 April 2025 to discuss the next steps in the budget process. Picture: Lindsay Dentlinger/EWN

JOHANNESBURG - ActionSA is confident it has presented a viable plan to the finance minister that will enable government to raise the required revenue without increasing value-added tax (VAT).

The recently passed budget includes a non-binding recommendation from ActionSA for Treasury to explore alternative methods for generating funds without hiking taxes.

The party is adamant it will be able to reverse the 0.5 percentage point increase to VAT, which kicks in on 1 May.

Speaking at an African National Congress (ANC) event in Johannesburg on Sunday, President Cyril Ramaphosa, said that government was committed to finding alternative revenue sources.

"Treasury will examine whether there are other options other than through a VAT increase where we can fill the gap of about R13.5 billion. So that has been left for discussion and examination and in the end, we will look for all ways and means to see whether that is possible or not. From current examination, Treasury has said having looked at areas where they can look, it doesn't seem to be so."