Tensions are high ahead of Wednesday’s revised budget speech, with opposition parties opposing any increase in VAT.
The Democratic Alliance (DA), a member of the Government of National Unity (GNU), is calling for improved revenue collection as an alternative to tax increases on an already struggling economy.
Last month, Finance Minister Enoch Godongwana proposed a 2% VAT hike to address a R60 billion budget shortfall.
On Wednesday, 12 March, the Minister of Finance, Mr Enoch Godongwana, is scheduled to deliver the 2025 Budget Speech at 14:00 in the National Assembly temporary Chamber, the Nieuwmeester Dome in Parliament.
Minister Godongwana will also introduce the Appropriation Bill and… pic.twitter.com/tDhuzQ06Tw
— Parliament of RSA (@ParliamentofRSA) March 11, 2025
DA spokesperson Karabo Khakhau says, “South Africans cannot afford any VAT hike at all, any tax hike at all – whether it be VAT, personal tax, or corporate tax. We know very well that the people who are going to feel the hardest pinch of a VAT increase right now are poor South Africans and the middle class.
“Poor South Africans who are mostly unemployed and are already battling to put a slice of bread on their tables. And for the middle class who are already choking in debt, defaulting on their credit payments and are unable to live a life that is one of dignity. We do not want it. The Democratic Alliance will never be in support of it.”
Godongwana stands firm on VAT hike
Solutions
Meanwhile, the DA says it has given the government multiple solutions on how to reconfigure the budget without cutting essential services.
Khakhau says, ” You can one – have a 50% reduction in government advertising budget. You can two – have a 33% reduction in travel and catering expenditure across all departments. Number three – you can have a hiring freeze for all non-essential government positions for the next 12 months. And then lastly, you have a national audit of ghost employees because we know that the state has a lot of ghost employees.”
