ActionSA has submitted a proposal to Finance Minister Enoch Godongwana, outlining strategies to generate R100 billion in additional government revenue without increasing the value-added tax (VAT). The party’s delegation met with the minister’s team on Saturday to discuss these alternative methods. With six seats in Parliament, ActionSA played a pivotal role in the recent approval of the national budget. Their support was contingent upon the condition that the proposed VAT hike be withdrawn. The fiscal framework passed last Wednesday incorporated ActionSA’s non-binding recommendation, granting the Treasury 30 days to identify ways to raise R28 billion without resorting to a VAT increase. This amount corresponds to the additional revenue anticipated from the planned 0.5 percentage point VAT hike set to take effect on May 1. In a brief media statement, ActionSA asserted that it has identified methods for the government to raise R100 billion without increasing VAT. While the specifics of the plan have not been disclosed, the party indicated that discussions with the finance minister are ongoing.
