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ANC Backs ActionSA’s Budget Proposal: No VAT Hike, Full Inflation Relief for Taxpayers
In a significant political development, the African National Congress has announced its support for an ActionSA proposal to amend the national budget, potentially sparing South Africans from both a VAT increase and bracket creep.
Key Budget Amendments Proposed
The supported proposal includes two major changes to the current budget plan:
- Scrapping the proposed 0.5-percentage-point increase in VAT
- Providing personal income taxpayers with full relief for inflation
Political Implications
This rare alignment between the ANC and opposition party ActionSA signals potential shifts in fiscal policy approaches as political parties position themselves ahead of elections. The move could provide relief to households struggling with cost-of-living pressures.
The ANC’s support significantly increases the likelihood of these amendments being adopted when Parliament considers the budget.
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