ANC calls joint media briefing with several parties after VAT hike reversal
Thabiso Goba 24 April 2025 | 6:25
African National Congress emblem. Picture: AFP
JOHANNESBURG - The African National Congress (ANC) has called a joint media briefing with several political parties following the decision to withdraw the controversial 0.5 percentage point increase in value-added tax (VAT).
All parties within the Government of National Unity (GNU), except the Democratic Alliance (DA) and Freedom Front Plus, are expected to attend the multi-party briefing.
Opposition parties, ActionSA and Build One South Africa (BOSA), which supported the VAT hike when it was passed, have also been invited.
ALSO READ: DA, ANC to meet Thursday for talks relating to GNU
The past two months have been marked by political infighting over Finance Minister Enoch Godongwana's proposal to raise VAT.
Over the last two weeks, the ANC has been in discussions with both coalition partners and opposition parties to explore alternatives to the VAT increase.
During these meetings, various parties presented counterproposals.According to the National Treasury, some of the suggestions could pose greater risks to economic growth.
The ANC said it had reached common ground with the involved parties and would outline the next steps during Thursday morning's joint media briefing.
In an overnight statement, the Treasury confirmed that keeping VAT at 15% would result in a R75 billion revenue shortfall.
It's expected that political leaders will use the multi-party briefing to present alternative measures to address the revenue deficit.
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