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[File Photo]: The GNU cabinet expand from 30 to 32 ministers and from 36 to 43 deputy ministers.
ActionSA has announced that it will not participate in discussions regarding the Government of National Unity (GNU) unless the proposed value-added tax (VAT) increase is revoked.
Government announced an increase in the VAT rate from 15.0% to 15.5%, effective 1 May 2025 and a further increase to 16.0% for April 2026.
ActionSA’s statement comes amid growing concerns about the future of the GNU.
This after the Democratic Alliance (DA) which is the African National Congress’s (ANC) biggest GNU partner did not support last week’s fiscal policy framework.
ActionSA Chairperson Michael Beaumont says the country needs a stronger opposition.
“We are saying we are not available to the GNU until such time as the tax increase is scrapped because we made a very conscious decision that South Africa needs a stronger opposition. Opposition parties have abandoned that space in the pursuit of government and that is why we play the role that we do. And it will be difficult to see how going into the GNU with 70% of parties in Parliament in the GNU would really assist that process further.”
PODCAST | ActionSA will only join GNU if the VAT hike is reversed: