The ANC believe that the proposed VAT increase was a carefully measured intervention designed to sustain government revenue without disproportionately affecting the poor.
Image: Facebook/MyANC
African National Congress (ANC) has stated that it is ready to collaborate with parties that are not in the Government of National Unity (GNU), in a bid to garner support for the national budget.
Addressing the media briefing at the ANC’s headquarters, Luthuli House in Johannesburg on Wednesday, party secretary-general Fikile Mbalula stated there was movement both within the coalition and beyond.
“We have been talking to all political parties, and our door of engagement remains open to political parties within the GNU and beyond,” he said.
He mentioned that the budget will be passed working with everybody in government.
This comes after Finance Minister Enoch Gondongwana presented his budget speech in Cape Town on Wednesday.
Godongwana proposed that the country’s VAT rate will increase by 0.5 percentage points both in 2025 and 2026, which will ultimately bring the VAT rate to 16% in 2026 and 2027. Responding to this, the Democratic Alliance (DA) thought its leader John Steenhuisen made it clear that they would not agree to the changes as they currently stand.
As a result, there was abrupt discontent within the GNU as the VAT increase has been the biggest area of concern.
Steenhuisen clarified that the DA would only support the national budget if the VAT measures were temporarily introduced.
According to Mbalula, the proposed VAT increase was a carefully measured intervention designed to sustain government revenue without disproportionately affecting the poor.
He said ANC recognised the concerns of working-class families, which is why mitigation measures—including an expanded zero-rated VAT basket, real increases in social grants, and fuel levy relief—have been prioritised.
“Unlike opposition parties that are fixated on elite interests, the ANC remains committed to pro-poor economic policies that protect vulnerable households while ensuring sustainable public finances,” he said.
He further mentioned that the ANC was the only party committed to transformation, economic justice, and the full realisation of the aspirations of the majority.
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