Mashaba says ActionSA not considering joining GNU until VAT hike withdrawn
Herman Mashaba said he would not give any thought to such a proposal, which has not been made by the ANC, until the VAT increase and income tax bracket creep matters had been resolved.
FILE: ActionSA leader, Herman Mashaba. Picture: X/Action4SA
CAPE TOWN - ActionSA said it was premature to suggest it would join the Government of National Unity (GNU) after it last week supported the African National Congress (ANC) in getting the fiscal framework passed in Parliament.
With the Democratic Alliance (DA)'s time in the GNU said to be fading fast after an ANC working committee meeting on Monday called for heads to roll, ActionSA leader Herman Mashaba said he was not about to consider an invite to the Cabinet table until the value-added tax (VAT) increase was withdrawn.
The DA and Freedom Front Plus failed to toe the GNU line last week, voting against the fiscal framework.
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The VAT rate will increase to 15.5% in May, which ActionSA wants stopped before it considers any further political steps.
While the DA hangs on to see whether the ANC will be pulling the plug on their partnership, ActionSA said it was not about to step into the breach.
Mashaba said he would not give any thought to such a proposal, which has not been made by the ANC, until the VAT increase and income tax bracket creep matters had been resolved.
"It must be stressed that ActionSA has received no communication from the ANC in this regard, but the party will remain available for constructive engagements around the budget impasse," said Mashaba.
While it appears highly unlikely the finance minister can make legislative adjustments to the VAT matter within the tight frame, ActionSA said it submitted to him over the weekend alternative revenue proposals that could generate R100 billion.
EWN understands that the ANC has called a meeting of political parties on Tuesday night to discuss their budget alternatives.
ActionSA said it only supported last week's budget blueprint to protect South Africans from the national budget being used as a political football.
"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," said Mashaba.