South Africa lauds progress in talks on VAT hikes
THE African National Congress (ANC) says it remains committed to fostering “inclusive and principled dialogue” as part of efforts to ensure effective governance and safeguard South Africa’s democratic gains.
This follows a meeting between the ANC negotiating team, led by secretary-general Fikile Mbalula, and a delegation from the Freedom Front Plus (FF+), headed by Corné Mulder. According to the ANC, the engagement was constructive.
It was previously reported that the FF Plus and the Democratic Alliance (DA) were among the parties that voted against the passing of the national budget in Parliament.
Their opposition was largely due to concerns over the 0.5% Value-Added Tax (VAT) increase, which is expected to come into effect in May. The DA has also filed papers in the Western Cape High Court challenging the legality of the 2025/26 national budget process.
The ANC described the meeting with FF+ as “cordial” and “forward-looking”, with both parties recognising the urgent need to address South Africa’s fiscal and governance challenges.
”There was broad alignment on the importance of the recently adopted Fiscal Framework, particularly as a foundation to stabilise public finances, maintain essential public services, and promote sustainable economic growth,” said ANC spokesperson Mahlengi Bhengu-Motsiri.
The discussions also underscored the need for strong parliamentary oversight, efficient public spending, and decisive action against financial mismanagement.
Over the weekend, the ANC also held high-level talks with the DA in Johannesburg. DA Federal chairperson Helen Zille confirmed that “a negotiating team appointed by the Federal Executive of the DA met a delegation from the African National Congress (ANC)”.
Bhengu-Motsiri noted that GNU partners must “be guided by mutual respect, common purpose, and disciplined cooperation in the national interest.”
She added that these engagements are part of the ANC’s broader effort to deepen multiparty consensus and democratic accountability within the GNU.
The ANC reaffirmed its commitment to “inclusive leadership, stability, and the advancement of the country’s developmental agenda” as it continues discussions with various political stakeholders.
First published by IOL
