CURRENTLY ON AIR ⇒
  • Highlights of the Days Programmes
    Thursday, 10:05 pm - 4:00 am
    [ - ]

feedback@radioislam.org.za

logo


((( Listen Live )))))
Radio Islam Logo


South Africans Relieved as VAT Hike is Reversed Following Political Negotiations

Neelam Rahim | neelam@radioislam.co.za

3-minute read
26 April 2025 | 10:30 CAT

Budget Speech 2025: Finance Minister Enoch Godongwana tabled a two-step hike—0.5% in 2025/26 and another 0.5% in 2026/27.

The decision to reverse the planned 0.5% VAT increase has been met with widespread relief across South Africa, following negotiations between several political parties, the National Treasury, and the African National Congress (ANC).

In an interview with Radio Islam International, Funzi Ngobeni, a provincial leader for ActionSA, acknowledged that the party, alongside nine others, engaged with the Treasury and the ruling party to propose alternatives to the VAT hike. “They submitted recommendations together with a fiscal policy proposal that the minister must reconsider the VAT,” Ngobeni explained, crediting ongoing engagements and negotiations for the reversal.

The reversal follows a period of public concern as notices from banks and service providers had already warned customers about the expected VAT increase from May 1. Ngobeni mentioned that these organizations would now need to update customers on the decision not to proceed with the hike.

Ngobeni emphasized that the outcome was a collective effort, stating, “It would not be honest to say it was only ActionSA. Nine parties worked together to convince the ANC that the 0.5% increase was not the right approach.” He also welcomed the ANC’s willingness to reconsider its initial stance after reviewing alternative proposals provided by opposition parties.

Regarding the future political landscape, Ngobeni said ActionSA remains open to collaborating with other parties within the Government of National Unity (GNU) if approached. He cited the party’s current cooperation with various parties in Tshwane, where work is being done to meet the expectations of residents.

“There is still a lot of work to be done, but we are on the right track,” he said, adding that if given the opportunity at the national level, ActionSA believes it could contribute positively across departments such as Home Affairs and Police.

The VAT reversal is seen as a significant development at a time when South Africans continue to face financial strain amid broader economic challenges.

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

ADVERTISE HERE

Prime Spot!!!

Contact:
advertisingadmin@radioislam.co.za 

Related Articles

The Asia Pacific Report

The Asia Pacific Report

Indonesia and Nepal Crackdowns Undermine ASEAN’s Reform Goals 12 September 2025 | 12:50 CAT 1-minute read Civil society leaders across Southeast Asia are warning that state-sponsored violence in Indonesia and Nepal threatens the region’s democratic ambitions, even as...

read more
Rampahosa faces mounting pressure to reduce cabinet size

Rampahosa faces mounting pressure to reduce cabinet size

Sameera Casmod | sameerac@radioislam.co.za 11 September 2025 | 12:07 CAT 3-minute read Following calls to reduce the cabinet size, President Cyril Ramaphosa has said that despite his wish for a smaller executive, political realities dictate otherwise. The President...

read more
The Media Lens

The Media Lens

10 September 2025 | 08:40 CAT 3-minute read Nepal Uprising and PM’s resignation The Nepalese government banned major social media platforms, sparking nationwide protests that left nearly 20 people dead and forced Prime Minister K.P. Sharma Oli to resign. The Gen...

read more

Subscribe to our Newsletter

0 Comments