Political analysts warn that the ANC’s insistence on increasing VAT could fracture its GNU coalition.
The ANC’s determination to push through the value added tax hike at all costs, despite opposition from government of national unity political partners, could risk alienating GNU allies.According to reports, the ANC has thrown down the gauntlet to its GNU partner, the DA, over the stalled budget, warning that it would approach the EFF for the required votes if the DA refused accept a smaller VAT increase.
“The implications are that, if the ANC continues to play the Big Brother role, it risks alienating its GNU partners and potentially collapse the GNU,” said Koma. “However, if such a deal is made and it leads the EFF into the GNU, I shudder to think about the size of the Cabinet and the number of deputy ministers.”
“Finding the right fiscal mix in an amended budget, including the 2% VAT hike, nonetheless remains a tough set of decisions.
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