Neelam Rahim | neelam@radioislam.co.za

3-minute read
11 April 2025 | 09:47 CAT

ActionSA leader Herman Mashaba. Image by: Phando Jikelo / Independent Newspapers

ActionSA has presented a proposal to the National Treasury which it says could unlock over R180 billion — far exceeding the amount required to prevent a looming VAT hike set for implementation on 1 May.

Speaking to Radio Islam International, ActionSA’s KwaZulu-Natal leader, Zwakele Mncwango, reiterated the party’s firm stance against the VAT increase, warning that it would have a devastating impact on already struggling South Africans.

“We have a clear plan that can generate between R100 billion and R180 billion without punishing the poor through increased VAT,” said Mncwango. He emphasized that the proposal is rooted in cutting wasteful expenditure, plugging corruption loopholes, and reprioritizing non-essential government spending.

In addition to its economic proposal, ActionSA is drawing a hard line on its conditions for participating in the government of national unity (GNU). Mncwango made it clear that the party will not entertain negotiations unless there is a commitment to significantly reduce the size of the cabinet.

“We are not willing to compromise on this. South Africa cannot afford a bloated cabinet while citizens are battling rising costs of living,” he asserted.

The call for a leaner government has been central to ActionSA’s campaign platform, which stresses ethical leadership, fiscal discipline, and accountability.

Mncwango warned that failure to implement these measures could erode public trust and further burden taxpayers. “People are tired of paying for government inefficiencies while service delivery declines,” he said.

The party’s proposal comes amid growing concerns about the state of South Africa’s economy, high unemployment rates, and a rising cost of living crisis.

As the 1 May VAT hike deadline looms, all eyes are now on the National Treasury and the GNU negotiations. ActionSA’s bold stance is likely to intensify pressure on government leaders to find alternative solutions to balance the country’s finances without deepening inequality.

Listen to the full interview on The Daily Round-Up with Moulana Junaid Kharsany and Zwakele Mncwango here.