The African National Congress (ANC) continues to meet with various political parties in and outside the Government of National Unity (GNU) this weekend in an effort to resolve the impasse around a VAT increase and to find proposals for alternative revenue streams.
It is also expected that the way forward for the GNU will be discussed, particularly with parties like the Democratic Alliance (DA) and Freedom Front Plus (FF Plus), who have voted against the 2025 Fiscal Framework and Revenue Proposals in the National Assembly.
The party meets with the DA today and with FF Plus tomorrow.
Those who have had meetings with the ANC already, say it was fruitful.
ActionSA spokesperson, Matthew George and BOSA leader, Mmusi Maimane, explain.
“Key to the discussion, was a clear mutual commitment, to ensure revenue alternatives are tabled that will identify alternatives to a VAT increase. In this regard both parties are unequivocally committed to this process and to shield South Africans from any increase before 1 May 2025.”
“We all agreed that VAT increase is not a way forward and so looking at legal processes to reverse that and ultimately believe that for the future of the country, it’s going to be important that we have stabilizing so we felt it was a constructive meeting.”
Meanwhile, in accordance with the Parliamentary process, there are specific deadlines to be met.
Parliament spokesperson Moloto Mothapo explains that the Division of Revenue Bill (DIRA) that sets out the equitable share each sphere of government will receive, which is the first looming deadline.
“The day scheduled for its consideration is the 6 May 2025. Now, once the DIRA is passed by the National Assembly (NA), it will then be referred to the National Council of Provinces (NCOP) for further processing. Parliament will then proceed to the third phase, which is to consider the Appropriations Bill. The Appropriations Bill provides for the actual allocations to individual government departments entities and programmes. Parliament must process the Appropriations Bill four months from the start of the new financial year. For its part, the NA will consider this bill on the 10th of June 2025.”
In a statement, the Economic Freedom Fighters (EFF) confirmed it had met with the ANC, saying it reiterated their opposition to a VAT increase and made submissions for alternatives.
