VAT Hike Betrayal: GNU Coalition Cracks Widen ANC’s Crisis

ANC’s VAT Hike Betrayal: A Crushing Blow to South Africa’s Poor Amid GNU Turmoil

GNU Coalition Cracks Widen Over VAT Hike Betrayal

The African National Congress (ANC) was once heralded as the “voice of the oppressed.” It has now betrayed millions with its brazen push for a 0.75% VAT hike. This VAT Hike Betrayal is masked as a “compromise” to resolve the budget deadlock. It has ignited fury across the Government of National Unity (GNU). The party is willing to sacrifice the poor to appease its fiscal failures. As coalition partners revolt and ordinary South Africans brace for devastation, the ANC’s moral decay has never been more glaring.

The proposal, leaked ahead of Monday’s tense Cabinet meeting, marks a grotesque reversal of the ANC’s decades-old pro-poor rhetoric. President Cyril Ramaphosa’s administration is scrambling to plug a R45-billion budget shortfall. It now seeks to balance the books on the backs of grandmothers, informal traders, and workers already drowning in debt. “This isn’t governance—it’s class warfare,” snapped DA finance spokesperson Mark Burke, whose party has vowed to block the hike. “The ANC would rather bleed dry the working class than trim its own bloated excess.”

We will never endorse this robbery of the poor. The ANC can’t fix corruption, so they punish the people instead.

Echoes of Outrage: Opposition Slams ANC’s VAT Betrayal

The ANC’s VAT Hike Betrayal has united rivals in rare, fiery consensus. From the DA to the EFF, parties have condemned the move as “economically suicidal” and “morally bankrupt.” EFF leader Julius Malema spoke at his Tembisa birthday rally. He dismissed rumours of backdoor negotiations with the ANC. “We will never endorse this robbery of the poor. The ANC can’t fix corruption, so they punish the people instead.” His words were met with roaring approval from crowds chanting, “Tax the rich, feed the poor!”

ANC's VAT Hike Betrayal Crushing Blow to South Africa's Poor Amid GNU Turmoil
ANC’s VAT Hike Betrayal Crushing Blow to South Africa’s Poor Amid GNU Turmoil

But the ANC’s defiance is unshaken. Insiders claim Ramaphosa’s team plans to bypass the DA entirely. They are courting smaller GNU parties and even considering flirting with the EFF. Their goal is to force the hike through. “This isn’t negotiation—it’s extortion,” hissed a DA negotiator. “They’re holding the economy hostage unless we bow to their cruelty.”

A Nation on Its Knees: How the VAT Hike Betrayal Will Wreck Lives

To understand the VAT Hike Betrayal, step into the shoes of Thandiwe Mbeki, a domestic worker in Johannesburg. Her monthly wage—R3,500—barely covers rent, maize meal, and school fees. A VAT increase, economists warn, would spike food prices by 4–6%, pushing her family into starvation. “I already skip meals to feed my children,” she said, trembling. “What’s left to cut? The air we breathe?”

The VAT hike’s cruelty lies in its brutality: it claws equally from billionaires and beggars. While the wealthy shrug off minor price bumps, the poor—who spend 80% of their income on VAT-taxed essentials—will bleed out. “This isn’t a tax; it’s a death sentence,” declared economist Dr. Lindiwe Nkosi. “The ANC has abandoned its soul.”

ANC’s Broken Promises: From Liberation to Exploitation

How did we get here? Rewind to 2018, when the ANC’s last VAT increase—from 14% to 15%—sparked national riots. Ramaphosa, then newly elected, vowed “never again.” Fast-forward to 2025: corruption scandals have gutted SARS. Mismanagement has bankrupted state-owned enterprises. Once again, the ANC’s answer is to pick the people’s pockets.

“They learnt nothing,” growled PA spokesperson Steve Motale. “Instead of recovering stolen funds or taxing the ultra-rich, they’re squeezing the destitute. It’s cowardice.” The DA proposed cost-cutting measures. These include axing redundant agencies like the Youth Development Fund and halting SANDF’s costly DRC deployment. The ANC has dismissed these proposals as “austerity.” Yet critics argue the ANC’s refusal to slash its own excess—like ministerial perks and vanity projects—reveals its true priorities.

Silent Suffering: The Human Cost of the VAT Hike Betrayal

In Khayelitsha’s informal settlements, rage simmers. Community leader Sipho Dlamini recounts how residents pooled R50 for a funeral last week. This is a sum that will vanish under VAT hikes. “We’re burying our dead in debt,” he seethed. “The ANC buries its shame in our graves.”

Even middle-class households face ruin. Cape Town teacher Mandla Sobukwe, supporting his unemployed siblings, says the hike will erase his savings. “I’ve budgeted every cent. Now? I’ll drown.”

The GNU’s Fragile Future: Coalition on the Brink

The VAT Hike Betrayal has shattered GNU unity. With the DA and EFF digging in, Ramaphosa’s threat to partner with “any willing party” risks collapsing the coalition. “This isn’t governance—it’s chaos,” said political analyst Sizwe Mbatha. “The ANC would rather burn the GNU than admit failure.”

Friday’s postponed dispute resolution meeting looms large. Deputy President Paul Mashatile’s committee must now salvage a compromise, but hope is thin. “The ANC’s arrogance is a ticking time bomb,” warned IFP MP Mkhuleko Hlengwa.

A Call to Arms: Resistance Against the VAT Hike Betrayal

Civil society isn’t waiting. Trade unions, NGOs, and grassroots movements are mobilising nationwide protests. “We’ll shut down this VAT madness,” vowed activist Zanele Mthembu. “If the ANC won’t listen, we’ll make them feel our pain.”

This isn’t governance—it’s class warfare

Economists propose alternatives: a 5% wealth tax on millionaires, closing corporate loopholes, or reviving SARS’ enforcement unit. “The money’s there—it’s just in offshore accounts and Gucci stores,” argued tax expert Jabulani Ngcobo.

Conclusion: The ANC’s Day of Reckoning

The VAT Hike Betrayal isn’t just policy—it’s a stain on South Africa’s soul. A party born to liberate now enslaves with taxes. As Ramaphosa gambles with lives, the poor ask: Was this freedom?

The GNU’s survival hinges on the ANC’s next move. Will it heed the people’s cries or double down on betrayal? One thing is clear: South Africa’s patience has run out.

ANC's VAT Hike Betrayal Crushing Blow to South Africa's Poor Amid GNU Turmoil

FAQs on the ANC’s VAT Hike Proposal

Why is the ANC proposing a VAT increase?

The ANC claims the 0.75% VAT hike is necessary to address a R45-billion budget shortfall caused by economic mismanagement, corruption, and declining tax revenues. Critics argue it’s a lazy solution that punishes the poor instead of recovering stolen funds or cutting wasteful spending.

How will the VAT increase affect ordinary South Africans?

The hike will raise prices on essential goods like food, fuel, and clothing, disproportionately impacting low- and middle-income households. For millions already struggling, this means less food on the table and deeper debt.

What are the alternatives to a VAT increase?

Economists suggest alternatives like a wealth tax on millionaires. They propose closing corporate tax loopholes. Another suggestion is boosting SARS’ capacity to recover unpaid taxes. Cutting wasteful expenditure, like redundant government agencies, also saves billions.

Why are opposition parties against the VAT hike?

Opposition parties argue the VAT hike is regressive, hurting the poor while letting the wealthy off the hook. They also accuse the ANC of failing to address corruption. They claim mismanagement is one of the root causes of the budget crisis.

The VAT hike will collapse the GNU coalition?

Yes. The DA and EFF have vowed to block the hike. The ANC’s threat to bypass them risks fracturing the coalition. If the ANC pushes ahead without consensus, it will trigger a political crisis and erode trust in the GNU.

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