African National Congress (ANC) Secretary-General Fikile Mbalula revealed that the nation can expect news regarding the contentious 0.5% increase in Value Added Tax (VAT) soon.

The anticipated statement follows intensive discussions within the Government of National Unity (GNU) and with several left-leaning political parties, aimed at resolving the ongoing budget deadlock.

According to Mbalula, discussions with partners in the GNU, as well as with left-leaning political parties, are expected to be concluded between today (Wednesday) and Thursday.

The ANC has been actively engaging with all political stakeholders to resolve the ongoing budget deadlock. This included talks with Democratic Alliance (DA) and the Economic Freedom Fighters (EFF) which have since challenged the budget in court.

“We look forward to a big announcement after our engagements with political parties this afternoon, particularly those that have voted for the budget framework,” he said.

Mbalula briefed the media with church leaders at the Cathedral of Christ the King, Johannesburg on Wednesday. This was done to honour the late Pope Francis.

Mbalula’s comments follow growing opposition from several political parties regarding the upcoming VAT increase, scheduled to take effect on May 1.

This controversy arises in the wake of Parliament’s approval of the 2025 Budget, as presented by Finance Minister Enoch Godongwana.

In court, the DA and EFF argued that the 2025 budget was passed without proper consultation. They want the halt the VAT hike due to be effective next week.

The court has since reserved the judgment.

In response, Mbalula said, “We have been engaging as of last week, as you know other political parties have gone to court but we think as we conclude our discussions, we should be in a position between today and tomorrow, to have a joint press conference on the matters of the budget and the way forward with regards to VAT.”

kamogelo.moichela@iol.co.za

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ANC's Fikile Mbalula hints imminent announcement regarding VAT budget decision

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