‘ActionSA won’t entertain coalition discussions until tax increases scrapped’ — party chair Michael Beaumont

8 Apr 2025

ActionSA provided crucial support to the ANC to pass the Budget’s fiscal framework after talks with the DA collapsed, threatening the future of the government of national unity. ActionSA national chairperson Michael Beaumont says the party was not played and is not seeking positions in a restructured government of national unity, at least not until the VAT increase is scrapped.

Daily Maverick: ActionSA supported the Budget on the condition that further engagements would take place within 30 days to explore alternatives to the proposed 0.5 percentage point VAT increase. Have you prepared for the eventuality that this does not happen?

Michael Beaumont: The VAT Act of 1991 prescribes that VAT goes up on the date announced by the minister in his Budget speech (which was 1 May 2025), irrespective of what transpired in Parliament last week.

ActionSA supported the passage of the fiscal framework with conditions for the VAT increase and income tax bracket creep to be removed, because this was the best path to preventing a 1 May increase. Those who advocated for amendments would have seen the process set back weeks, with no prospect of removing the increases by 1 May 2025, because they have treated our national Budget as a negotiating chip for their pursuit of political power in the government of national unity (GNU).

DM: There seems to be a perception that ActionSA was used or played by the ANC to pass the Budget, given the current developments. Do you think that perception is far from the truth?

MB: It is not a credible perspective because the balance of power that ActionSA has held until now will continue to be held in the remaining two Budget votes left [the Division of Revenue Bill and Appropriation Bill]. If the ANC does not make good on its commitments, ActionSA will withhold support in the votes to come.

Read more: Budget deadlock — is ActionSA the ANC’s saviour and what does it mean for the GNU?

DM: I understand that the party recently met National Treasury. Could you walk us through what was discussed during that meeting or give a general feel of the direction it took?

MB: ActionSA has submitted revenue alternatives to the VAT increase and income tax bracket creep, exceeding R100-billion. Engagements will now begin around these proposals. However, we have been clear to communicate that while ActionSA participates constructively in these engagements, there are no votes for a Budget with these increases.

DM: ActionSA has always maintained that it has no intention of being part of a government of national unity, with firm opposition to the idea. Is this still the party’s position?

MB: ActionSA declined to join the GNU in June last year because its work would be more effective in filling the vacuum left by the opposition stampede for power than our agency in an ANC/DA grand coalition dressed up as a GNU. It is difficult to see what has changed since then, but until the tax increases have been removed ActionSA will not entertain such discussions.

DM: We have been informed that the party was promised “a future in the GNU” in exchange for its support for the Budget. Is there any truth to this?

MB: No such promises were made or sought. ActionSA remains a constructive opposition party that lends its vote to matters in Parliament on the merits of the matter under consideration.

DM: If ActionSA were offered the chance to join the government tomorrow, what position would the party pursue, and why?

MB: ActionSA will not entertain any consideration of a reconstituted GNU until such time as the tax increases have been removed and, accordingly, is not considering any positions.

Read more: ANC’s fallout with DA escalates as Ramaphosa pushes back on business pressure

DM: During the party’s election campaign, ActionSA firmly rejected any association with the ANC. On several occasions, the party leader, Herman Mashaba, said: “If ever the party I lead, ActionSA, seeks a coalition with the ANC, I’ll step aside.” What has changed since then?

In the wake of the May 2024 elections, ActionSA has publicly communicated a change in its coalition outlook to be more pragmatic and to be willing to work with parties in the best interests of South Africans. As a practical demonstration of this, we have applied this principle in Tshwane, where ActionSA replaced a failed coalition with one that is now delivering to the benefit of all residents in Tshwane.

DM: Do you not fear that your electorate might punish the party for these actions in the 2026 local government elections?

ActionSA’s former red lines on coalitions were awarded 1.3% of the vote, suggesting this is not a position to which the party should cling. In an era in which all parties are either coalescing with the ANC in one sphere of government or another, or have communicated their willingness to do so, ActionSA’s position on coalitions remains the most resident-centric and principled in its approach.

DM: In Joburg, ActionSA has a working relationship with the ANC, supporting the incumbent mayor and receiving the speaker position in return. Some of your conditions included the scrapping of the R200 surcharge fee, which has not been implemented and seems unlikely to be. Why does ActionSA continue this relationship when the ANC has not upheld its end of the agreement?

MB: ActionSA entered the legislature in Johannesburg to provide a more effective form of accountability than could be provided from outside of government.

Our position has been used to table motions addressing critical issues and to fight for the residents of Joburg in many areas of concern to them. Joburg suffers from a lack of alternative governance arrangements after the DA collapsed no less than four efforts to take back the city under the former coalition arrangement.

DM: What now for ActionSA?

MB: ActionSA continues as a constructive opposition focused on addressing the Budget crisis the GNU has created through its own failures over the past nine months. Our focus remains to demonstrate our brand of government in Tshwane as an alternative for many South Africans frustrated by governance failures of the ANC and DA, while readying our structures for a campaign in 2026. DM

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