Note To Editors: These remarks were delivered today by ActionSA’s Parliamentary Leader Athol Trollip MP during a briefing held at Parliament
Members of the media and fellow South Africans,
From the outset, ActionSA has fiercely opposed any increase in VAT and the stealth tax of personal income tax bracket creep. We remain resolute in our commitment to shielding ordinary South Africans from unjust and unnecessary tax hikes.
Many South Africans are rightly concerned—concerns we must take seriously and address with every effort. We cannot allow the spread of reductionist, malicious, and outright false narratives that are being perpetrated by bad faith actors.
These do nothing to reassure South Africans and, in fact, cause more harm, especially when they come from those who offer no practical solutions.
No amount of petulant, childlike behaviour—such as ripping up speeches or storming off the podium after delivering nothing more than an attack soundbite will protect South Africans from unfair tax increases.
What must be made clear is that yesterday’s adoption of the report was about determining the size of the government’s spending and was the first step in kickstarting the substantive deliberations necessary to develop the appropriation, revenue and tax bills in the coming days, weeks and months.
The stark reality is that government expenditure has spiralled out of control with widespread wastage, placing our fiscal position in serious jeopardy. This demands tough yet responsible decisions.
Engaging in grandstanding and political brinkmanship does nothing to resolve this crisis—in fact, it only deepens it. Without responsible action, we risk finding ourselves months down the line without a set budget and with an economy in tatters.
Yesterday’s adoption of the report on the fiscal framework was merely one step in a multi-stage budgeting process before the final budget is approved. This process typically takes three to four months to conclude and involves multiple votes on various aspects of the budget.
The adopted report on the fiscal framework includes several key points, foremost among them ActionSA’s recommendation which is the only practical tool enabling Parliament and government to identify alternatives to cover the shortfall created by scrapping the 0.5 percentage point VAT increase and addressing income tax bracket creep.
ActionSA chose to recommend changes to the Fiscal Framework rather than amend it outright because an amendment would have required the Minister of Finance to redo the entire Budget process. This would have caused delays, instability, and—critically—allowed the VAT increase to take effect on 1 May with little recourse, the very outcome we are fighting against.
Instead, our approach allows for the necessary time to table alternative revenue proposals, and—most importantly—gazette the postponement of the VAT increase, without triggering a full Budget revision.
ActionSA led the charge in the Standing Committee on Finance to protect South Africans by tabling an amendment to the committee report, ensuring that:
– The proposed 0.5 percentage-point VAT increase is effectively scrapped.
– The removal of inflation adjustments for personal income tax (bracket creep) is not approved.
– Instead, the Committee will have 30 days to develop alternative proposals to raise the R19 billion in personal income tax and R13 billion in VAT that these measures would have generated.
This approach ensures that the government explores responsible revenue solutions without burdening ordinary South Africans with unfair tax hikes.
ActionSA’s constructive, responsible alternative keeps the Fiscal Framework intact while preventing fiscal instability and procedural deadlock.
While the ruling coalition failed to agree on a solution, ActionSA is taking the lead in protecting South Africans from unfair tax hikes. We are not just rejecting VAT and tax hikes—we are providing a practical, revenue-generating alternative.
Our solution focuses on strengthening SARS’s ability to collect revenue efficiently, broadening the tax base, and cracking down on illicit trade.
Importantly, ActionSA has proposed alternatives which include;
– SARS’s Revenue Recovery Programme, if funded with just R2 billion annually, could recover between R20bn and R50bn per year, according to SARS’s own estimates.
– The additional R1.5bn allocated to SARS in 2025/26 (and R4bn over two years) will significantly improve SARS’s capacity to boost revenue collection.
– SARS’s own figures prove the effectiveness of targeted fiscal interventions: As per SARS’s press statement yesterday, net revenue collection for the year was R8.8 billion higher than the revised estimate, and R114 billion more than the previous year. This underscores the fact that a well-funded SARS can generate additional revenue without burdening taxpayers.
This is precisely why ActionSA has been advocating for increased SARS funding since Day 1: to ensure that ordinary South Africans are not forced to bear the burden of repeated tax increases while government corruption, mismanagement, and waste continue unchecked.
The failure of the ANC or government communications to accurately convey its contents—evident in yesterday’s statement and social media posts, which materially misrepresented the facts of the report that was voted on—does not change its substance or lessen the importance of the recommendations we put forward in the best interests of South Africans.
All stakeholders would do well to remember that the budgeting process still involves multiple bills that will be voted on over the coming months. Our support remains conditional on the strict fulfilment of the agreement to scrap the VAT increase and income tax bracket creep through alternative proposals—several of which we have already outlined.
On the DA’s legal action, they are well within their rights to pursue legal remedies in line with their views. It is also crucial to recognise that this is uncharted territory for our country, and in any constitutional democracy, every mechanism available must be respected.
What must also be noted about the DA is that ActionSA made genuine efforts to engage with them on the budget—efforts that were met with no willingness to engage.
We were more than prepared to have these discussions, just as we also reached out to Dr John Hlophe of MK and the EFF.
ActionSA, as the only constructive opposition in parliament, has taken deliberate steps to consult as broadly as possible to find a resolution in the best interests of South Africans.
Finally, the work is now underway to collaborate with all parties in exploring every possible alternative over the next 30 days to protect South Africans from excessive taxation.
This will require us to be firm, clear, and resolute in our efforts—ensuring that we do not compromise the fiscus while, most importantly, preventing any further burden on already struggling taxpayers.
We remain adamant: Cut the Fat, Don’t Hike VAT!
Stopping the VAT Hike and Stealth Taxes
Note To Editors: These remarks were delivered today by ActionSA’s Parliamentary Leader Athol Trollip MP during a briefing held at Parliament
Members of the media and fellow South Africans,
From the outset, ActionSA has fiercely opposed any increase in VAT and the stealth tax of personal income tax bracket creep. We remain resolute in our commitment to shielding ordinary South Africans from unjust and unnecessary tax hikes.
Many South Africans are rightly concerned—concerns we must take seriously and address with every effort. We cannot allow the spread of reductionist, malicious, and outright false narratives that are being perpetrated by bad faith actors.
These do nothing to reassure South Africans and, in fact, cause more harm, especially when they come from those who offer no practical solutions.
No amount of petulant, childlike behaviour—such as ripping up speeches or storming off the podium after delivering nothing more than an attack soundbite will protect South Africans from unfair tax increases.
What must be made clear is that yesterday’s adoption of the report was about determining the size of the government’s spending and was the first step in kickstarting the substantive deliberations necessary to develop the appropriation, revenue and tax bills in the coming days, weeks and months.
The stark reality is that government expenditure has spiralled out of control with widespread wastage, placing our fiscal position in serious jeopardy. This demands tough yet responsible decisions.
Engaging in grandstanding and political brinkmanship does nothing to resolve this crisis—in fact, it only deepens it. Without responsible action, we risk finding ourselves months down the line without a set budget and with an economy in tatters.
Yesterday’s adoption of the report on the fiscal framework was merely one step in a multi-stage budgeting process before the final budget is approved. This process typically takes three to four months to conclude and involves multiple votes on various aspects of the budget.
The adopted report on the fiscal framework includes several key points, foremost among them ActionSA’s recommendation which is the only practical tool enabling Parliament and government to identify alternatives to cover the shortfall created by scrapping the 0.5 percentage point VAT increase and addressing income tax bracket creep.
ActionSA chose to recommend changes to the Fiscal Framework rather than amend it outright because an amendment would have required the Minister of Finance to redo the entire Budget process. This would have caused delays, instability, and—critically—allowed the VAT increase to take effect on 1 May with little recourse, the very outcome we are fighting against.
Instead, our approach allows for the necessary time to table alternative revenue proposals, and—most importantly—gazette the postponement of the VAT increase, without triggering a full Budget revision.
ActionSA led the charge in the Standing Committee on Finance to protect South Africans by tabling an amendment to the committee report, ensuring that:
– The proposed 0.5 percentage-point VAT increase is effectively scrapped.
– The removal of inflation adjustments for personal income tax (bracket creep) is not approved.
– Instead, the Committee will have 30 days to develop alternative proposals to raise the R19 billion in personal income tax and R13 billion in VAT that these measures would have generated.
This approach ensures that the government explores responsible revenue solutions without burdening ordinary South Africans with unfair tax hikes.
ActionSA’s constructive, responsible alternative keeps the Fiscal Framework intact while preventing fiscal instability and procedural deadlock.
While the ruling coalition failed to agree on a solution, ActionSA is taking the lead in protecting South Africans from unfair tax hikes. We are not just rejecting VAT and tax hikes—we are providing a practical, revenue-generating alternative.
Our solution focuses on strengthening SARS’s ability to collect revenue efficiently, broadening the tax base, and cracking down on illicit trade.
Importantly, ActionSA has proposed alternatives which include;
– SARS’s Revenue Recovery Programme, if funded with just R2 billion annually, could recover between R20bn and R50bn per year, according to SARS’s own estimates.
– The additional R1.5bn allocated to SARS in 2025/26 (and R4bn over two years) will significantly improve SARS’s capacity to boost revenue collection.
– SARS’s own figures prove the effectiveness of targeted fiscal interventions: As per SARS’s press statement yesterday, net revenue collection for the year was R8.8 billion higher than the revised estimate, and R114 billion more than the previous year. This underscores the fact that a well-funded SARS can generate additional revenue without burdening taxpayers.
This is precisely why ActionSA has been advocating for increased SARS funding since Day 1: to ensure that ordinary South Africans are not forced to bear the burden of repeated tax increases while government corruption, mismanagement, and waste continue unchecked.
The failure of the ANC or government communications to accurately convey its contents—evident in yesterday’s statement and social media posts, which materially misrepresented the facts of the report that was voted on—does not change its substance or lessen the importance of the recommendations we put forward in the best interests of South Africans.
All stakeholders would do well to remember that the budgeting process still involves multiple bills that will be voted on over the coming months. Our support remains conditional on the strict fulfilment of the agreement to scrap the VAT increase and income tax bracket creep through alternative proposals—several of which we have already outlined.
On the DA’s legal action, they are well within their rights to pursue legal remedies in line with their views. It is also crucial to recognise that this is uncharted territory for our country, and in any constitutional democracy, every mechanism available must be respected.
What must also be noted about the DA is that ActionSA made genuine efforts to engage with them on the budget—efforts that were met with no willingness to engage.
We were more than prepared to have these discussions, just as we also reached out to Dr John Hlophe of MK and the EFF.
ActionSA, as the only constructive opposition in parliament, has taken deliberate steps to consult as broadly as possible to find a resolution in the best interests of South Africans.
Finally, the work is now underway to collaborate with all parties in exploring every possible alternative over the next 30 days to protect South Africans from excessive taxation.
This will require us to be firm, clear, and resolute in our efforts—ensuring that we do not compromise the fiscus while, most importantly, preventing any further burden on already struggling taxpayers.
We remain adamant: Cut the Fat, Don’t Hike VAT!