ActionSA says it will not consider joining the government of national unity (GNU) until the impasse over the budget is resolved.
The party will decide on joining the ANC-led GNU only if the proposed increase of 0.5 percentage points in VAT for two years is removed.
Herman Mashaba’s party played a critical role in helping the ANC push through the fiscal framework and revenue proposals last week after the DA said it would not vote for it.
However, ActionSA’s support was on condition the National Treasury would use the 30 days until May 1 to consider proposals on where it can make spending cuts to avoid the VAT increase.
Since the vote, several ANC leaders have suggested that it may be time to consider negotiating with ActionSA, Rise Mzansi and Build One SA (Bosa) to join the GNU after pushing for the DA’s removal.
The ANC’s national working committee has called for the reconstituting of the GNU within a week after talks with its current partners, as well as the possibility of getting ActionSA to join.
But ActionSA has made it clear it would not consider joining until the parties have agreed to remove the VAT increase.
“ActionSA affirms the party will not give consideration to this proposal until the VAT increase and income tax bracket creep have been resolved,” the party said.
It said the party would remain available for constructive engagements about the budget impasse as its focus “for now” was on removing the VAT increases.
“After the approval of ActionSA’s recommendations in this regard, a process has been initiated to assess revenue alternatives that would allow for the removal of these increases. Over the weekend, ActionSA made submissions of revenue alternatives exceeding R100bn.
“For ActionSA, the removal of these increases is the focus of our engagements with other parties and the party would not consider any other matter until these matters are addressed to the satisfaction of South Africans.”
There is, however, a view that ActionSA has been duped into supporting the ANC’s VAT budget with a hope that there is still an opportunity to amend the budget delivered by finance minister Enoch Godongwana before VAT kicks in on May 1.
But Mashaba told Radio 702 on Tuesday if this was the case the ANC could “forget” about ActionSA’s support in the vote on the Division of Revenue Bill.
TimesLIVE
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.