ActionSA Takes Hardline Stance: Scrap VAT Hike Before GNU Talks Can Resume
Cape Town, 10 April 2025 – In a move that further complicates South Africa’s coalition politics, ActionSA has declared it will not engage in renewed Government of National Unity (GNU) negotiations unless the ANC-led government reverses its controversial VAT increase.
The Ultimatum
The party’s national chairperson Michael Beaumont stated unequivocally:
“We cannot in good faith discuss power-sharing while ordinary South Africans are being burdened with this regressive tax. The 1% VAT hike must be scrapped before any meaningful negotiations can proceed.”
Political Calculus
This hardline position:
- Directly challenges the ANC’s recent NWC resolution to revive GNU talks
- Positions ActionSA as the defender of working-class citizens against “elitist compromises”
- Creates an unlikely alliance with the DA, who also opposed the VAT measure
GNU Implications
The demand creates a catch-22 for the ANC:
- If they concede: Risk appearing weak and opening floodgates for more demands
- If they refuse: Lose a potential coalition partner needed to offset DA resistance
Broader Battle Lines
Political analysts note this reflects growing opposition unity on economic issues:
- DA fighting NHI funding mechanisms
- IFP concerned about rural impact
- Now ActionSA drawing red line on taxation
With Parliament set to reconvene next week, the GNU’s survival may hinge on whether Treasury can find alternative revenue streams to replace the projected R15 billion from the VAT increase.
