Cape Town – ActionSA has announced it will not support the Budget, removing six potential votes that could have aided the ANC in reaching the required majority in the National Assembly.
ActionSA’s leaders, Michael Beaumont and Athol Trollip, said in a statement that the party opposes VAT and income tax increases, citing government inefficiencies and lack of consultation in budget development.
“ActionSA has written to the ANC Task Team negotiating the passage of the 2025/26 budget to convey that ActionSA will not support the budget.
“This follows a cordial meeting between the two parties on Friday, during which ActionSA made itself available to listen to the ANC’s proposals in a manner consistent with its position as a constructive opposition party.
“In our letter to the ANC, ActionSA conveyed the view that the proposed increases in both VAT and income tax (through income tax bracket creep) cannot be supported for a government that has failed to address its own considerable wastage and inefficiencies,” read the statement.
ActionSA has informed the ANC that we will not support the 2025/26 Budget.
We cannot support a Budget that proposes increases in both VAT and income tax (through income tax bracket creep) for a government that has failed to address its own considerable wastage and… pic.twitter.com/OLjynwEtwy
— ActionSA (@Action4SA) March 25, 2025
The said that central to the party’s decision was “the reality that this budget arises from a GNU that did not consult ActionSA in the development of the proposed budget. ActionSA cannot impose tax increases on South Africans to support those in the GNU who are notionally opposed to these increases, yet continue implementing them at the expense of South Africans”.
The ANC, lacking a parliamentary majority, has sought support from other parties, including the EFF and MKP, but faces resistance due to the VAT hike and its collaboration with the DA and FF Plus.
GNU partners like the IFP, PA, UDM, and GOOD have backed the Budget, but additional votes are still needed.
Parliamentary committees are continuing the Budget approval process, marking the first time this has been contested due to the ANC’s loss of majority control.
Finance Minister Enoch Godongwana presented the Budget two weeks ago, but it lacked backing from several GNU partners, most notably the DA.
With 87 seats, the DA’s support, combined with the ANC’s 159 seats, would have been sufficient to secure its passage.
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Compiled by Betha Madhomu
