The Democratic Alliance and Action SA have gone on a full public relations war as the fallout over the budget
Action SA declared it had managed to convince the ANC that no VAT increase be implemented but the DA disagreed calling the move a “sellout tactic”.
“ActionSA has done a deal with the ANC to pass a 1% VAT hike over the next 2 years, making life more expensive. The DA condemns this sell-out tactic by ActionSA, which has worked with the ANC to adopt the Budget and has condemned South Africans to a higher cost of living,” said the DA in the swift attack.
Action SA denied selling-out and said accused the DA of spreading propaganda insisting its proposal to the
6 parties supported the budget proposal, the fiscal framework and revenue proposal ahead of Wednesday’s vote. Action SA proposed to parliament’s Standing Committee on Finance that National Treasury be given 30 days to find another avenue to raise extra funds that doesn’t include VAT hike and declared it had stopped the proposed VAT hike.
While just like the DA, the EFF had initially accused Action SA of trying to deceive the public with its claims of having stopped the VAT hike but later changed tune with National Spokesperson Sinawo Thambo who also sit on the committee saying he believed Action SA did not understand what it agreed to.
Thambo had warned during the hearing that there was no way the budget could be amended if the budget was formally adapted during Wednesday’s debate.
“We may have been wrong to think that he is deliberately deceiving South Africans. He sincerely does not seem to know what he has done. He says that if the Budget comes back with VAT, Action SA will vote against it.
“The fiscal framework and revenue proposals inclusive of VAT hikes is being voted for tomorrow! Today, they supported the fiscal framework and revenue proposals including VAT hikes in Committee.
“30-days will pass and VAT will kick in regardless of their recommendations which are RECOMMENDATIONS in a Committee report, not AMENDMENTS to the fiscal framework. There is no point where he will get to amend the this again. This is astonishing,” said Thambo suggesting Action SA was being played by the ANC.
If the DA voted against the budget the ANC would still need the support of one or two other smaller parties to get it passed. The party has threatened to do so previously and on Tuesday dared the ANC to go ahead and pass the budget with the support of parties outside the GNU.
The war of words between the ANC continued well into the night.