S-Africa praises progress in discussions on VAT hikes

2025-04-23 07:49:06

(MENAFN) The African National Congress (ANC) has reaffirmed its dedication to promoting “inclusive and principled dialogue” as part of efforts to enhance governance and protect South Africa’s democratic progress. This follows a meeting between the ANC negotiating team, led by Secretary-General Fikile Mbalula, and a delegation from the Freedom Front Plus (FF+), headed by Corné Mulder. According to the ANC, the discussions were productive.

Previously, the FF Plus and the Democratic Alliance (DA) were reported to have voted against the national budget in Parliament, primarily due to concerns about the 0.5% increase in Value-Added Tax (VAT), which is set to take effect in May. The DA has also filed a challenge in the Western Cape High Court, questioning the legality of the 2025/26 national budget process.

The ANC described its meeting with the FF+ as “cordial” and “forward-looking,” with both sides agreeing on the urgency of addressing South Africa’s fiscal and governance challenges. ANC spokesperson Mahlengi Bhengu-Motsiri emphasized that there was broad alignment on the importance of the recently adopted Fiscal Framework as a means to stabilize public finances, sustain essential public services, and foster economic growth.

The discussions also focused on the need for strong parliamentary oversight, efficient public spending, and decisive action against financial mismanagement.

In addition, the ANC held high-level talks with the DA in Johannesburg over the weekend. DA Federal Chairperson Helen Zille confirmed that a negotiating team from the DA met with the ANC delegation. Bhengu-Motsiri pointed out that these discussions are part of the ANC’s wider goal to build multiparty consensus and enhance democratic accountability within the Government of National Unity (GNU).

The ANC reiterated its commitment to “inclusive leadership, stability, and advancing the country’s development” as it continues talks with various political groups.

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