ANC engaging other parties in bid to resolve budget impasse: Mashatile

African National Congress (ANC) Deputy President Paul Mashatile says he is confident that a solution will be found with the current impasse in passing the budget.

Mashatile spoke to SABC News in Alexandra, Johannesburg today.

Political parties like the Economic Freedom Fighters (EFF), Democratic Alliance (DA) and ActionSA have made it clear that they won’t vote for the budget as they do not support an increase in VAT.

Mashatile says that the ANC is engaging with parties the regarding the matter.

“Well, we have to engage with other parties. It’s something that we will always do; when there are issues we talk. I am confident that we will resolve the problems,” says Mashatile.

GNU Budget | Parties opposed to VAT hike

The Congress of South African Trade Unions (Cosatu) was the first organisation at the public hearings on the 2025 budget today to call for the removal of Value-Added Tax (VAT) hikes.

Parliament’s Joint meeting of the Standing Committee on Finance and Select Committee on Finance are hosting public hearings on the budget that was tabled by Finance Minister Enoch Godongwana earlier this month.

The February tabling of the budget was postponed due to disagreement among Government of National Unity (GNU) members, including the African National Congress (ANC), over a proposed 2 percentage point VAT increase.

The consequent budget was tabled with a 1 percentage point increase over two financial years.

Cosatu’s Parliamentary Coordinator Matthew Parks has called for its removal.

“We appreciate less than 2%, but still feel that the VAT hike hit the working class, drowning them in debt. Also concerned about not adjusting tax bracket for middle income, who, again, are struggling to survive the high cost of living. We propose Parliament remove VAT hikes, adjust PIT (Personal Income Tax) for lower incomes. And if we cannot, at SARS, make sure the wealthy pay their fair share,” says Parks.