Cape Town – The African National Congress (ANC) will hold a joint media briefing with several political parties — excluding the Democratic Alliance (DA) and Freedom Front Plus, reports said on Thursday — following the withdrawal of a proposed 0.5% VAT increase.
Despite previously supporting the hike, ActionSA and Build One South Africa (BOSA) have also been invited.
“These parties have come together to facilitate a principled resolution to the fiscal framework impasse and to uphold the stability and developmental trajectory of South Africa,” IOL quoted the ANC as saying.
The controversial VAT proposal had sparked political tensions, but after recent discussions with coalition and opposition parties, the ANC says a consensus has been reached.
The National Treasury warns that keeping VAT at 15% will create a R75 billion shortfall.
The briefing will outline alternative revenue-raising measures, EWN said.
