ActionSA president Herman Mashaba has affirmed that his party will not give any consideration to the proposal of reconstituting the Government of National Unity (GNU) to include ActionSA until the issues of the value-added tax (VAT) increase and income tax bracket creep have been resolved.

Last week, the Inkatha Freedom Party (IFP) and the African National Congress (ANC) voted for an ActionSA report that supported the fiscal framework, including a VAT increase, instead of amending or withdrawing the report, as suggested by the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF).

ActionSA was accused by the DA of selling out South Africans.

The party said it noted media reports arising from the ANC’s National Working Committee (NWC) meeting held on Monday night, which he said suggested a move to reconstitute the GNU to include ActionSA.

“It must be stressed that ActionSA has received no communication from the ANC in this regard, but the party will remain available for constructive engagements around the Budget impasse,” he said.

He defended that ActionSA took the “responsible step” to end the Budget impasse and protect South Africans on the strict condition that both the VAT increase and income tax bracket creep were removed.

Mashaba said following the approval of ActionSA’s recommendations, a process had been initiated to assess revenue alternatives that could allow for the removal of these increases.

“Over the weekend, ActionSA made submissions of revenue alternatives exceeding R100-billion in this regard. For ActionSA, the removal of these increases alone is the focus of our engagements with other parties and the party would not consider any other matter until such time as these matters are addressed to the satisfaction of South Africans,” he explained.

ActionSA parliamentary leader Athol Trollip said his party chose to recommend changes to the fiscal framework rather than amend it outright because an amendment would have required the Minister of Finance to redo the entire Budget process.

He said this would have caused delays, instability, and allowed the VAT increase to take effect on May 1 with little recourse, the very outcome he said ActionSA was fighting against.