The DA’s future in the Government of National Unity now seems uncertain after ActionSA offered the ANC its support to pass the budget.

During a finance committee meeting yesterday, the ANC and IFP – both GNU parties – voted in favour of a recommendation tabled by ActionSA – who is not in the coalition.

This includes the scrapping of the 0.5% VAT increase for the 2025/26 year. The recommendation includes that the National Treasury must now use the next 30 days to find alternative revenue streams to replace the VAT hike.

ActionSA has hailed this as a major victory, but as it stands, the finance committee report was adopted in its current form, which includes the 0.5% value-added tax (VAT) increase.

READ: ActionSA claims victory in getting VAT hike scrapped

The DA is opposed to ActionSA’s proposals, claiming that it will result in a 1% VAT increase over the next 2 years.

This is because ActionSA’s recommendation is reportedly not binding.

In a statement, the Party’s National Spokesperson Willie Aucamp says ActionSA’s deal with the ANC will make life more expensive for South Africans.

He says the DA has fought and negotiated for a Budget that would have created growth and jobs, cut the waste in government and stopped VAT hikes – but the ANC, ActionSA has now denied the people of South Africa what the economy needs.

“The DA condemns this sell-out tactic by ActionSA, which has worked with the ANC to adopt the Budget and has condemned the poorest South Africans to a higher cost of living.”

Aucamp says by adopting this Budget without the reforms and changes that were needed, ActionSA has also shut down the required government spending review, which Aucamp says is like handing a ‘blank cheque to the ANC’ to continue spending government money without review.

“This is a despicable u-turn from ActionSA which publicly committed to not support the ANC’s VAT Budget, and yet have now supported it.”

Aucamp says this is also a serious infraction by the ANC, which has ‘crossed a line in the sand’ by getting the Budget approved using a Party that is not in the GNU.

“In governments across South Africa, ActionSA continues to lend its seats and votes to whoever will give them relevance, no matter how much damage to they do. This is a betrayal of the people of South Africa, who cannot afford a VAT hike. Let the history books show that ActionSA has brought a VAT hike to the people of South Africa.”

Parliament is expected to vote on the report and budget at a sitting today.