A dramatic twist rocked South Africa’s political stage this morning, sparking waves of tension in the Government of National Unity (GNU). The bold headline “President Ramaphosa in Trouble” began trending after ActionSA delivered a powerful ultimatum to the African National Congress (ANC) scrap the planned 0.5% VAT hike or lose our support.
The ANC, already struggling without a parliamentary majority, is facing serious heat after ActionSA made it clear that their backing isn’t unconditional. While the party initially voted in favor of the April 2 fiscal framework to maintain economic stability, they’ve drawn a hard line: the proposed tax increase, set for May 2025, must be dropped.
ActionSA parliamentary leader Athol Trollip didn’t mince words. He warned that unless the ANC comes up with an alternative to the R13 billion expected from the VAT hike—and the R19 billion from income tax adjustments—within 30 days, ActionSA will pull its support from the budget bills.
ActionSA warns ANC, scrap VAT hike or lose budget support
ActionSA has drawn a firm line on the 2025/26 national budget, warning the African National Congress (ANC) that its support is conditional on the scrapping of the proposed 0.5% VAT increase set to take effect in May 2025.… pic.twitter.com/yNTMMB1zTK
— MDN NEWS (@MDNnewss) April 4, 2025
“South Africans are already under immense financial pressure,” Trollip said. “Adding a tax increase now is irresponsible and unfair.”
The stakes couldn’t be higher. Without ActionSA and other smaller parties, the ANC cannot pass essential legislation, making the VAT issue a make-or-break moment for the ruling party. Trollip emphasized that the solution isn’t more taxes but smarter governance—suggesting tighter tax collection and slashing unnecessary government spending.
This bold move by ActionSA positions them as a fierce watchdog in the GNU, willing to collaborate but unafraid to call out what they see as fiscal missteps. As the clock ticks, all eyes are now on President Ramaphosa and his next move because political survival might just depend on it.
