Actionsa
By Mpho Moloi
ActionSA has accused the Democratic Alliance (DA) of hypocrisy, claiming the party is pushing for personal income tax increases while loudly opposing a proposed value-added tax (VAT) hike in the Government of National Unity (GNU) budget discussions. The attack comes after Finance Minister Enoch Godongwana revealed in Parliament that the DA agreed to a 0.5% VAT increase if the African National Congress (ANC) scraps the Expropriation Act. However, the ANC says there’s still no agreement on the budget, exposing cracks in the coalition.
ActionSA Calls Out DA’s Tax Proposals
ActionSA Member of Parliament (MP) Alan Beesley has taken aim at the DA, accusing it of not putting South Africans first. Speaking after Godongwana’s statement on Friday, Beesley said the DA’s own budget proposals included hikes in personal income tax, the fuel levy, and excise duties.
“The DA submitted their proposals on the budget which included increases in personal income tax, the fuel levy and excise duties,” Beesley stated. He argued that these moves contradict the DA’s public stance against the 0.5% VAT increase, calling it a sneaky attempt to burden taxpayers.
Beesley also pointed to the “tax bracket creep,” a hidden tax rise where people pay more as their income pushes them into higher tax brackets without adjustments for inflation. “While the DA has made a lot of noise about the 0.5% VAT increase, they have been silent on the tax bracket creep which is going to cost hard-working and hard-pressed South Africans an additional R18 billion,” he said.
DA’s Deal Revealed by Finance Minister
The controversy heated up when Finance Minister Enoch Godongwana dropped a bombshell in Parliament. He revealed that the DA had agreed to the 0.5% VAT increase in its budget submission—but only if the ANC ditches the Expropriation Act. This law allows the government to take land without compensation in certain cases, a policy the DA has long opposed.
Godongwana’s disclosure has put the DA in a tough spot. Critics say it shows the party is willing to trade tax hikes for political wins, raising questions about its commitment to easing the financial strain on South Africans.
ANC: Budget Talks Still Up in the Air
Despite the DA’s alleged agreement, the ANC insists that the GNU hasn’t settled on a budget yet. ANC Secretary-General Fikile Mbalula echoed this, saying recently, “GNU parties [are] yet to reach agreement on [the] proposed budget.” The ANC sees the tax increases as a way to tackle the country’s money troubles, but its coalition partners aren’t all on board.
The lack of consensus highlights the tension within the GNU, a coalition formed after the ANC lost its majority in Parliament. With the budget deadline nearing, the stakes are high for South Africa’s economic stability.
What This Means for South Africans
ActionSA’s accusations have sparked a debate about who’s really looking out for taxpayers. The DA’s proposed increases in personal income tax, fuel levy, and excise duties could mean higher costs for everything from groceries to petrol. Meanwhile, the VAT hike would make everyday goods more expensive for everyone.
Beesley warned that these tax plans would hit “hard-working and hard-pressed South Africans” the hardest. With living costs already soaring, many are frustrated at the idea of paying more to the government.
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