Johannesburg, South Africa – ActionSA has supported the African National Congress (ANC) in passing a 1% increase in Value-Added Tax (VAT) over the next two years, a decision that has sparked criticism from the Democratic Alliance (DA).

The DA, which had advocated for a budget aimed at economic growth, job creation, and reduced government expenditure, opposed the VAT increase, arguing that it would raise the cost of living for South Africans. The party contends that ActionSA’s support for the Budget has denied the country an opportunity for fiscal reforms that could have prevented tax hikes.

The DA has condemned ActionSA’s decision, stating that it contradicts the party’s earlier public stance against the VAT increase. The opposition party also criticized the ANC, asserting that it used a party outside the Government of National Unity (GNU) to secure the Budget’s approval.

Concerns have also been raised over government spending oversight, with the DA arguing that the approved Budget lacks necessary reforms to curb expenditure inefficiencies.

ActionSA has not yet publicly responded to the criticism. The decision marks a significant political development, as debates over taxation and government spending continue to shape the country’s economic policies.