Members of the Media,
Leaders of Political Parties both inside and outside of the GNU,
And, most importantly, fellow South Africans.
It gives me great pride to say to you today, that the VAT increase is gone thanks to the collective efforts of parties that engaged the ANC in good faith.
As you have heard today, when South Africans wake up on 1 May 2025, Worker’s Day, they will pay the same for their goods and services as they did the day before. This is what ActionSA promised from Day 1, and it is exactly what this collective here today has delivered.
This VAT increase has become a symbol to many South Africans who are gatvol and want to see change in their country.
Today, we celebrate more than just the scrapping of an unjust tax.
The reversal of the VAT increase is a victory that belongs to you, the people of South Africa, and to our maturing multi-party democracy.
Let us celebrate that you denied any political party a majority, and the power to determine budgets unilaterally. Let us celebrate that now, because of this, no one party can impose their will on you. Let us celebrate how you spoke out against the VAT increase, and how your voice was heard by the parties gathered here today.
It is with humility that I acknowledge this achievement was made possible by the political parties before you today, who acted on your wishes – unlike those within the GNU who merely claim to fight for you.
The parties gathered here today have worked together, both inside and outside the GNU, in the best interests of South Africans.
However, as the President of ActionSA, let me share our unique perspective and role in the shaping of these events.
As you know, ActionSA is not a member of the GNU.
We respectfully declined the invitation in favour of being a constructive opposition.
We said then, as we say now, that ActionSA would lend its support to the government when doing so served South Africans and withhold it when it did not.
And we said that we would be the point of the opposition spear when a tough opposition was required.
Over time, ActionSA has become increasingly concerned about the unprecedented budget crisis that has developed under this GNU.
Even from the opposition benches, it was clear that our national budget was being held hostage by certain parties within the GNU to negotiations about matters that has nothing to do with the budget.
ActionSA respects the rights of parties in the GNU to negotiate. This is, after all, a cornerstone of a healthy coalitions. However, one thing must be clear: at no point can South Africans or their democratic institutions be asked to pay for cheap, point-scoring political aspirations.
As the famous African proverb says, “when the elephants fight, it is the grass that suffers.”
The uncertainty of this budget crisis took place at a time when our markets were already reacting to tariffs imposed against our country and while municipalities were meant to be consulting citizens about how budgets would be used for service delivery.
From day one ActionSA’s decision to intervene was based on resolving this crisis and removing the VAT increase and no other consideration.
There have been no discussions about joining the GNU. There have been no positions promised to ActionSA. There have been no positions sought by ActionSA.
When engaged by the ANC’s negotiating team, ActionSA agreed to end the budget crisis by supporting the fiscal framework in Parliament with the strict condition that the VAT increase must be reversed. On this, we were non-negotiable.
As ventilated in court on Tuesday, the VAT Act of 1991 prescribed that VAT would increase on 1 May 2025, irrespective of what transpired in Parliament. That was never in dispute.
Parliament effectively had two choices to avoid this:
– Either amend the framework (as proposed by the DA, EFF and MK) that would have set the already delayed budget back months with the imminent 1 May VAT increase; or
– Pass the framework and work alongside other parties to find revenue alternatives to the R13.5 billion arising from the 0.5% VAT increase.
ActionSA chose the latter as the only pragmatic option to prevent a 1 May VAT increase, and today, that decision has been proven correct.
It was our Member of Parliament, Mr. Alan Beesley, who raised the condition for the VAT reversal to be placed upon our support for the fiscal framework, which was ultimately adopted by Parliament.
In simple terms, ActionSA rejected the budget as long as the VAT increase remained in place. Today, our position has been vindicated.
Despite this, what followed was a deliberate and well-funded misinformation campaign that misled you, the South African people, falsely claiming that ActionSA had supported a VAT increase.
While some continued to play politics, ActionSA made substantive submissions of revenue alternatives to the Finance Minister and began a series of engagements with the ANC.
During these engagements, both parties publicly committed to a VAT reversal before 1 May 2025.
There will be no VAT increase — not because of any court case that opportunistic parties now seek to falsely claim credit for.
But because of principled, good-faith negotiations, grounded in substance rather than extortionist, unpatriotic, and shamelessly dishonest politics.
It is highly appropriate for me to acknowledge the ANC and the Finance Minister for their role in our negotiations. Our engagements were conducted in good faith, with maturity, and with the best interests of the country in mind.
Nobody attempted to mislead or dupe anyone else. There was an absolute focus on the budget and nothing else.
Let us be clear: The reversal of this VAT increase was not achieved by the parties that were in court on Tuesday.
The VAT reversal was achieved by political parties that were willing to put their differences aside and demonstrate the maturity required to find an alternative to a VAT increase. These parties adopted a fiscal framework with the strict condition that a 30-day period would be used to assess revenue alternatives to a VAT increase.
During this period, we actively participated in submitting alternatives, around which engagements were held to explore their viability. The announcement by the Minister this morning, and this press conference, take place within the context of that process.
It is indeed quite bizarre that opposition political parties outside of the GNU had to step in and negotiate what a particular political party inside the GNU preferred to pursue through the courts.
That is a matter for the GNU to address and not a concern of ActionSA’s.
Ultimately, the coalition future of South Africa is based upon political parties without majorities, having to work together to achieve positive outcomes for the South African people.
As many of you will recall, ActionSA used to adopt a position of defining itself against other parties, declaring which parties we would and wouldn’t work with. We have matured since those days. We have come to realise that, in a world of coalition politics, ActionSA must be willing to work with the political parties that can best serve the South African people.
Look no further for the benefits of this approach than in our capital city, where Dr. Nasiphi Moya and the multi-party coalition government she leads are turning around a city that has failed over many years.
Look no further than the fact that VAT will not increase on 1 May. We made this commitment, and we have delivered on it.
The reality is that ActionSA has achieved more with its 6 seats outside the GNU than much larger parties have achieved while fighting their own government at the expense of the South African people.
Ladies and Gentlemen,
Many of you will know that my grandfather played a significant role in my upbringing following the death of my father when I was just 2 years old.
You have likely heard me share how he taught me to listen to what people say but to trust only what they do.
It is in this spirit that I can now account to the South African people:
First, ActionSA stood unwavering in its opposition to the VAT increase from the moment it was announced.
Second, ActionSA made a commitment to the South African people, against all odds, that we would work to stop a VAT increase on 1 May.
Working with these parties, ActionSA has delivered on this commitment.
I thank you.
As Promised: VAT Victory Secured for the People of South Africa
Members of the Media,
Leaders of Political Parties both inside and outside of the GNU,
And, most importantly, fellow South Africans.
It gives me great pride to say to you today, that the VAT increase is gone thanks to the collective efforts of parties that engaged the ANC in good faith.
As you have heard today, when South Africans wake up on 1 May 2025, Worker’s Day, they will pay the same for their goods and services as they did the day before. This is what ActionSA promised from Day 1, and it is exactly what this collective here today has delivered.
This VAT increase has become a symbol to many South Africans who are gatvol and want to see change in their country.
Today, we celebrate more than just the scrapping of an unjust tax.
The reversal of the VAT increase is a victory that belongs to you, the people of South Africa, and to our maturing multi-party democracy.
Let us celebrate that you denied any political party a majority, and the power to determine budgets unilaterally. Let us celebrate that now, because of this, no one party can impose their will on you. Let us celebrate how you spoke out against the VAT increase, and how your voice was heard by the parties gathered here today.
It is with humility that I acknowledge this achievement was made possible by the political parties before you today, who acted on your wishes – unlike those within the GNU who merely claim to fight for you.
The parties gathered here today have worked together, both inside and outside the GNU, in the best interests of South Africans.
However, as the President of ActionSA, let me share our unique perspective and role in the shaping of these events.
As you know, ActionSA is not a member of the GNU.
We respectfully declined the invitation in favour of being a constructive opposition.
We said then, as we say now, that ActionSA would lend its support to the government when doing so served South Africans and withhold it when it did not.
And we said that we would be the point of the opposition spear when a tough opposition was required.
Over time, ActionSA has become increasingly concerned about the unprecedented budget crisis that has developed under this GNU.
Even from the opposition benches, it was clear that our national budget was being held hostage by certain parties within the GNU to negotiations about matters that has nothing to do with the budget.
ActionSA respects the rights of parties in the GNU to negotiate. This is, after all, a cornerstone of a healthy coalitions. However, one thing must be clear: at no point can South Africans or their democratic institutions be asked to pay for cheap, point-scoring political aspirations.
As the famous African proverb says, “when the elephants fight, it is the grass that suffers.”
The uncertainty of this budget crisis took place at a time when our markets were already reacting to tariffs imposed against our country and while municipalities were meant to be consulting citizens about how budgets would be used for service delivery.
From day one ActionSA’s decision to intervene was based on resolving this crisis and removing the VAT increase and no other consideration.
There have been no discussions about joining the GNU. There have been no positions promised to ActionSA. There have been no positions sought by ActionSA.
When engaged by the ANC’s negotiating team, ActionSA agreed to end the budget crisis by supporting the fiscal framework in Parliament with the strict condition that the VAT increase must be reversed. On this, we were non-negotiable.
As ventilated in court on Tuesday, the VAT Act of 1991 prescribed that VAT would increase on 1 May 2025, irrespective of what transpired in Parliament. That was never in dispute.
Parliament effectively had two choices to avoid this:
– Either amend the framework (as proposed by the DA, EFF and MK) that would have set the already delayed budget back months with the imminent 1 May VAT increase; or
– Pass the framework and work alongside other parties to find revenue alternatives to the R13.5 billion arising from the 0.5% VAT increase.
ActionSA chose the latter as the only pragmatic option to prevent a 1 May VAT increase, and today, that decision has been proven correct.
It was our Member of Parliament, Mr. Alan Beesley, who raised the condition for the VAT reversal to be placed upon our support for the fiscal framework, which was ultimately adopted by Parliament.
In simple terms, ActionSA rejected the budget as long as the VAT increase remained in place. Today, our position has been vindicated.
Despite this, what followed was a deliberate and well-funded misinformation campaign that misled you, the South African people, falsely claiming that ActionSA had supported a VAT increase.
While some continued to play politics, ActionSA made substantive submissions of revenue alternatives to the Finance Minister and began a series of engagements with the ANC.
During these engagements, both parties publicly committed to a VAT reversal before 1 May 2025.
There will be no VAT increase — not because of any court case that opportunistic parties now seek to falsely claim credit for.
But because of principled, good-faith negotiations, grounded in substance rather than extortionist, unpatriotic, and shamelessly dishonest politics.
It is highly appropriate for me to acknowledge the ANC and the Finance Minister for their role in our negotiations. Our engagements were conducted in good faith, with maturity, and with the best interests of the country in mind.
Nobody attempted to mislead or dupe anyone else. There was an absolute focus on the budget and nothing else.
Let us be clear: The reversal of this VAT increase was not achieved by the parties that were in court on Tuesday.
The VAT reversal was achieved by political parties that were willing to put their differences aside and demonstrate the maturity required to find an alternative to a VAT increase. These parties adopted a fiscal framework with the strict condition that a 30-day period would be used to assess revenue alternatives to a VAT increase.
During this period, we actively participated in submitting alternatives, around which engagements were held to explore their viability. The announcement by the Minister this morning, and this press conference, take place within the context of that process.
It is indeed quite bizarre that opposition political parties outside of the GNU had to step in and negotiate what a particular political party inside the GNU preferred to pursue through the courts.
That is a matter for the GNU to address and not a concern of ActionSA’s.
Ultimately, the coalition future of South Africa is based upon political parties without majorities, having to work together to achieve positive outcomes for the South African people.
As many of you will recall, ActionSA used to adopt a position of defining itself against other parties, declaring which parties we would and wouldn’t work with. We have matured since those days. We have come to realise that, in a world of coalition politics, ActionSA must be willing to work with the political parties that can best serve the South African people.
Look no further for the benefits of this approach than in our capital city, where Dr. Nasiphi Moya and the multi-party coalition government she leads are turning around a city that has failed over many years.
Look no further than the fact that VAT will not increase on 1 May. We made this commitment, and we have delivered on it.
The reality is that ActionSA has achieved more with its 6 seats outside the GNU than much larger parties have achieved while fighting their own government at the expense of the South African people.
Ladies and Gentlemen,
Many of you will know that my grandfather played a significant role in my upbringing following the death of my father when I was just 2 years old.
You have likely heard me share how he taught me to listen to what people say but to trust only what they do.
It is in this spirit that I can now account to the South African people:
First, ActionSA stood unwavering in its opposition to the VAT increase from the moment it was announced.
Second, ActionSA made a commitment to the South African people, against all odds, that we would work to stop a VAT increase on 1 May.
Working with these parties, ActionSA has delivered on this commitment.
I thank you.