April 24, 2025 — South Africa
In a stunning fiscal flip-flop, the South African government has officially abandoned its controversial 0.5% VAT increase, originally slated to take effect this month. But as the dust settles, a new political battle has erupted — who deserves the credit for killing the tax hike?
The proposed increase, part of Finance Minister Enoch Godongwana’s strategy to plug a R32 billion revenue gap, had narrowly passed in Parliament on April 2, thanks to a last-minute alliance between the ANC, ActionSA, and Build One South Africa (BOSA). But the victory was short-lived.
Public Pressure Cracks the Policy
What followed was a wave of public backlash. Everyday South Africans, already grappling with rising costs, took to the streets and social media. Capitalizing on the unrest, opposition parties Democratic Alliance (DA) and Economic Freedom Fighters (EFF) filed a joint court challenge, arguing the hike would disproportionately hurt low-income citizens.
Allies Turned Adversaries
While DA and EFF led a legal offensive, their former allies—ActionSA’s Herman Mashaba and BOSA’s Mmusi Maimane—changed tack. They publicly urged the ANC to explore alternative strategies like targeted spending cuts and tighter fiscal discipline, claiming their conditional support for the budget had forced internal reassessment within the ruling party.
On April 24, the ANC blinked. The VAT increase was scrapped.
Who Gets the Glory?
Now the political scramble is on.
- ActionSA and BOSA say they were the real power brokers, citing behind-the-scenes negotiations and policy influence.
- DA’s Helen Zille calls it a “people’s victory,” crediting mass mobilization and the court case.
- The EFF echoes the sentiment, framing the reversal as proof of effective opposition.
Interestingly, ANC elections chief Fikile Mbalula praised ActionSA and BOSA for their “constructive engagement”—but made no mention of the DA and EFF’s legal action, fanning the flames of a deeper political divide.
The Verdict?
On social media, South Africans are split.
Some applaud the pragmatic approach of ActionSA and BOSA, saying reform comes through collaboration. Others see the DA and EFF’s relentless pushback as the true game-changer.
