ANC Backs ActionSA’s Budget Proposal: No VAT Hike, Full Inflation Relief for Taxpayers

The African National Congress (ANC) has thrown its weight behind an ActionSA proposal to amend the national budget, supporting the removal of a planned VAT increase and providing full inflation relief for personal income taxpayers.

Key Budget Changes Proposed

The supported proposal includes two significant changes to the current budget plan:

• Scrapping the VAT increase: Removal of the proposed 0.5-percentage-point hike in Value Added Tax
• Tax bracket relief: Full inflation adjustment for personal income tax brackets to prevent “bracket creep”

Political Implications

This rare alignment between the ANC and opposition party ActionSA signals potential shifts in fiscal policy approaches as South Africa navigates economic challenges. The move could provide much-needed relief to consumers facing rising costs of living.

For more details on this developing story, visit the original report on News24.