By Doreen Mokgolo
- ActionSA refuses to back the budget, saying tax hikes punish South Africans while wasteful spending continues.
- The DA also rejected the proposal, warning the ANC doesn’t have enough support to pass it.
ActionSA says it won’t vote for the 2025/26 national budget unless the government first cuts waste and inefficiency.
This comes after the party met with the ANC’s task team to discuss the budget plans.
Finance Minister Enoch Godongwana proposed a 1% VAT increase over two years, with 0.5% in May and another 0.5% in April 2026.
The initial budget was rejected by parties in February, forcing the minister to revise it.
Although the updated proposal has been tabled, it still faces serious opposition. If not enough MPs vote for it, the budget may fail.
But ActionSA national chairperson Michael Beaumont said the government can’t keep raising taxes without fixing its own problems first.
“This budget comes from a Government of National Unity (GNU) that didn’t consult ActionSA,” said Beaumont.
He said increasing both VAT and income tax through bracket creep is not the answer.
“We cannot impose tax increases on South Africans to support those in the GNU who are nationally opposed to the increases, yet continue implementing them at the expense of South Africans,” he said.
ActionSA joins a growing list of political parties in Parliament who are ready to reject the budget.
The DA, the second-largest party in the GNU, also says it won’t support the proposal.
Party leader John Steenhuisen said: “We made it clear to the ANC that we would not support any increases in the taxes unless they were temporary.”
He said the ANC agreed to reforms to grow the economy, create jobs, cut waste and reduce taxes within three years.
Beaumont said the choice now is simple: either parties in the GNU must approve the budget or a new government that can pass one must be formed.
Pictured above: Michael Beaumont.
Image source: ActionSA
