ActionSA said on Thursday it rejected the spread of “reductionist, malicious, and outright false narratives” perpetrated by “bad faith actors”, with regards to developments around the Fiscal Framework and Revenue Proposals.

On Tuesday, ActionSA, the Inkatha Freedom Party (IFP), and the African National Congress (ANC), voted for a report that supported the fiscal framework, including a VAT increase, instead of amending or withdrawing the report, as suggested by the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF).

“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,” said ActionSA Parliamentary leader Athol Trollip.

On Wednesday, the DA accused ActionSA and the IFP of betraying South Africans by supporting what it calls the ANC’s “anti-growth, anti-poor VAT hike".

Trollip agreed that government expenditure was a victim of widespread wastage, and placed the country’s fiscal position in jeopardy, however he called for political maturity.

“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,” he averred.

He explained that his party 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,” he explained.

Trollip said the budgeting process still involved multiple Bills that would be voted on over the coming months.

He said ActionSA’s alternative kept 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,” he added.

The party noted the ANC’s, or government communications’, misrepresentation of the facts of the report, saying it did not change the substance of ActionSA’s recommendations or lessen their importance, which were put forward in the best interests of South Africans.

He pointed out that from the outset, ActionSA had fiercely opposed any increase in VAT and the stealth tax of personal income tax bracket creep.

“We remain resolute in our commitment to shield ordinary South Africans from unjust and unnecessary tax hikes,” he said.

COMMITMENTS

Meanwhile, the ANC reiterated that the process of the adoption of the 2025 Fiscal Framework by Parliament was not about “political point-scoring”.

“We note that several parties engaged with the process in good faith, placing the country above narrow interests. The ANC acknowledges these contributions and emphasises that our collective responsibility is to protect South Africa’s democratic and developmental gains,” said ANC national spokesperson Mahlengi Bhengu-Motsiri.

She said the ANC supported the reconsideration of the proposed 0.5 % VAT increase owing to its potential impact on low-income households, especially during a time of economic pressure.

The party also supported the adjustment of personal income tax brackets in line with inflation.

LEGAL ACTION

Meanwhile, Trollip said ActionSA made genuine efforts to engage with the DA on the Budget, efforts that he said 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 MKP and the EFF,” he explained.

The DA has filed papers in the Western Cape High Court, challenging, among other things, Parliament’s passing of the 2025/26 Budget Fiscal Framework.

Trollip said the DA was within their rights to pursue legal remedies in line with their views, adding that it was also crucial to recognise that “this is uncharted territory for the country, and in any constitutional democracy, every mechanism available must be respected”.