The announcement that the proposed 0.5% VAT increase will be scrapped has been widely welcomed by all political parties, but while the DA says the outcome was as a result of court pressure on Finance Minister Enoch Godongwana, the ANC and other smaller parties, including ActionSA, the GOOD Party, and Build One South Africa (BOSA), say the victory is the result of several weeks of negotiation, collaborative engagement, and political maturity.
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ActionSA President Herman Mashaba credited the decision to a coalition of parties—both inside and outside the Government of National Unity (GNU)—who set aside political rivalries to act in the public interest.
“The reversal of the VAT increase is a victory that belongs to the people of South Africa and our maturing multi-party democracy,” said Mashaba.
He confirmed that ActionSA, despite not being part of the GNU, played a pivotal role by refusing to support the budget unless the VAT increase was reversed.
Mashaba specifically acknowledged the ANC and Finance Minister Enoch Godongwana for conducting negotiations in good faith, while BOSA described the process as proof that “when Parliament works as it should, people come first.”
GOOD Party Leader and Minister of Tourism Patricia de Lille echoed this sentiment, emphasizing that the decision was the result of a “genuine negotiation process” focused on protecting social spending and infrastructure investment, particularly in underserved communities.
“This resolution is not the result of litigation or political grandstanding. It is the result of collaboration and a shared commitment to putting the people of South Africa first,” de Lille stated.
BOSA stressed that its support for the budget came with clear, non-negotiable conditions—and that the party worked with nine others to ensure alternative revenue options were explored instead of increasing the tax burden.
The ANC, too, was critical of the DA.
In its statement, the ANC flatly rejects the DA’s assertion that the court case against VAT was the pivotal moment.
“It must be stated without ambiguity: the Democratic Alliance (DA) did not win in Cabinet, in Parliament, or in the courts. What they seek to brand as a “victory” is in fact the result of ANC-led consultations and consensus-building. The DA’s typical opportunistic attempt to claim victory is a continuation of their typical insult to South Africans whom they consider voting cattle with no sense of thinking or reasoning.”
ANC Secretary Fikile Mbalula, however, admitted that this was a lesson for the ANC, in that the matter should have been handled differently from the start. He said this was unchartered territory in a way, as the party now needs to consult on matters such as the budget, whereas before they didn’t need to.
