With the constraints of damaging policy such as Black Economic Empowerment (BEE) and Affirmative Action (AA) still firmly in place, the economy is growing too slowly to achieve rapid recovery – with an estimated growth rate of 1,6% this year compared to 1,2% in 2025.

South Africa is in a better fiscal position than in recent years, though, thanks to increased revenue. Nevertheless, the consolidated budget deficit remains a problem.

Financing historical state debt remains high and, although there is currently a primary budget surplus, loans are needed to make up the deficit created by debt-financing costs.

The situation at local government level remains a major concern. Corruption, poor decisions and maladministration at this level could play a significant role in counteracting the possibility of growth.

Still, the Freedom Front Plus (VF Plus) rejoices with every ordinary, hard-working taxpayer – especially the middle-income group – about the much-needed tax relief announced by the Minister.

Personal income tax brackets have been fully adjusted for inflation after two years. This means R13,7 billion more in the pockets of ordinary taxpayers, which will give the economy a boost.

Other important announcements include the cancellation of R20 billion in planned tax increases – largely due to higher revenue from VAT and company tax.

This shows that the Minister looked for ways to accommodate ordinary taxpayers. It is a good sign and should be welcomed.

There is a stimulus for small business development with the compulsory VAT registration threshold increasing from R1 million to R2,3 million and the capital gains tax exemption for business sellers rising to R2,7 million.

Overall, South Africa finds itself in a more stable fiscal position than in recent years, especially with the budget deficit narrowing to 4,5% of GDP.

In the Freedom Front Plus’s view, this is a step forward, but it is still not enough. The party welcomes the relief and focus on growth, but the burden of social grants and a public wage bill that consumes around 35% of state revenue remains unsustainable.

Municipalities continue to collapse due to incompetent cadre appointments and financial lifelines for state-owned entities, such as Transnet, waste billions.

The only way to bring about real change and achieve growth exceeding 3% is through major cutbacks in wasteful expenditure, merit-based appointments and greater market freedom.

Without it, genuine growth will simply not materialise and taxpayers will remain overburdened.

The Freedom Front Plus, therefore, demands urgent reforms for a competent, efficient state. The few fiscal rays of hope demonstrate what the country is capable of.

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The shutdown, which began on October 1, left hundreds of thousands of federal workers without pay and disrupted vital public services, including food aid, airport operations, and national parks.

The House of Representatives approved the bill in a narrow 222–209 vote, with six Democrats joining Republicans in support. It followed the Senate’s passage of the same bill earlier in the week.

The new funding measure restores operations across all federal agencies, ensures back pay for affected employees, and funds key programs such as the Department of Agriculture, veterans affairs, and SNAP food aid. It also includes new legal provisions protecting senators’ phone records and rolling back the legalization of hemp-derived THC products.

While the deal provides much-needed relief to millions, it fell short of Democratic goals to extend health insurance subsidies for low-income Americans. Lawmakers plan to revisit that issue in December.

Speaking from the Oval Office, President Trump declared, “The country has never been in better shape,” and urged Americans not to forget the shutdown when voting in the 2026 midterm elections. He accused Democrats of “political extortion” for triggering the shutdown over healthcare subsidies.

Republicans hailed the vote as a victory, while Democrats expressed disappointment, calling the compromise “a surrender.” Speaker of the House Mike Johnson described the shutdown as “utterly pointless,” saying, “Millions of families went without food on their tables—it was a game played with real people’s lives.”

As the government reopens, federal workers are returning to their posts, and agencies are resuming services. National parks, airports, and public programs are expected to normalize over the coming days, though some assistance programs like heating aid and early education services may take weeks to fully recover.

Despite the political drama, many in Washington expressed relief that the standoff had ended. Lawmakers from both parties were seen smiling and shaking hands after the vote, closing a turbulent chapter in American politics.

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By 30 September 2025, SARS recorded net revenue of R924.7 billion, up R78.6 billion from the previous year, and R18 billion above initial estimates. Nearly half of this growth came from stronger compliance efforts, reflecting a positive trend for the months ahead.

Commissioner Edward Kieswetter expressed support for the Minister’s fiscal roadmap, calling it a clear and practical plan for South Africa’s financial sustainability. He noted that SARS remains committed to boosting revenue collection, improving compliance, and facilitating trade through operational excellence and innovation.

SARS’s compliance programme has also delivered encouraging results, securing R131.6 billion from compliance activities—an increase of R9 billion compared to last year. Debt collections rose to R47.1 billion, up by 7.5%. Kieswetter credited the achievement to the dedication of SARS employees and compliant taxpayers, emphasizing their vital role in strengthening South Africa’s fiscal stability.

Revenue performance remained strong across major tax categories, including Corporate Income Tax (CIT), PAYE, Dividends Tax, Domestic VAT, and the General Fuel Levy.

CIT provisional tax payments reached R164.5 billion, growing by 9.5%, while PAYE collections totaled R371 billion—up by R30.9 billion (9.1%) from last year. Domestic VAT collections increased by R21.1 billion (7.8%), driven by solid performances in the finance, retail, and manufacturing sectors.

SARS also noted improvements in VAT refund management and a 5% growth in General Fuel Levy collections, thanks to increased import declarations. However, the agency acknowledged lower collections in some personal income tax categories, partly due to higher refund payments.

Looking ahead, Kieswetter reaffirmed SARS’s focus on building a smart, modern institution anchored in integrity and trust. He stressed that strong domestic revenue collection remains vital to reducing debt and dependence on external funding.

To further support SARS’s efforts, the government has allocated an additional R7.5 billion over the Medium-Term Expenditure Framework (2025–2028). This funding aims to enhance compliance, strengthen operations, and maintain the positive momentum in South Africa’s fiscal outlook.

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Finance Minister Enoch Godongwana has urged African nations to pursue self-sufficiency as a shield against global geopolitical instability.

Speaking at a regional economic forum, Godongwana emphasized the need for innovative strategies to reduce reliance on volatile external markets.
“Africa cannot continue to be at the mercy of global disruptions,” he said, pointing to trade wars, supply chain fractures, and fluctuating commodity prices as growing threats.

The minister called for accelerated implementation of the African Continental Free Trade Area (AfCFTA) to boost intra-African trade, which currently accounts for just 15% of the continent’s total commerce.

Godongwana highlighted diversification as key, urging investment in manufacturing, technology, and renewable energy. “We have the resources and talent to build resilient economies,” he noted, citing the rise of tech hubs in Nigeria and Kenya as models.

He also stressed food security, with Africa’s $50 billion annual food import bill a stark reminder of vulnerabilities.
Challenges remain, including infrastructure deficits and governance issues, but Godongwana’s remarks echo a broader African Union push for economic independence.

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The session will build on his 2025 Budget Speech presented yesterday, with a focus on the inflation-linked increase to the general fuel levy the first adjustment in three years.

The Roundtable offers an opportunity for the Minister to engage directly with key stakeholders and provide further clarity on the government’s fiscal strategy.

He is expected to highlight revenue measures, debt stabilization plans, and initiatives aimed at driving economic growth. Key themes will likely include balancing fiscal discipline with developmental goals, tackling South Africa’s economic hurdles, and advancing infrastructure investment and revenue collection efforts.

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Finance Minister Enoch Godongwana has rejected renewed calls for a wealth tax, citing risks to economic growth and investment.

Addressing Parliament, he argued that the current tax system already effectively targets wealth through measures like capital gains and estate duties.

While critics from the SACP, EFF, and MK parties argue a modest wealth tax could raise significant revenue without hurting the poor, Godongwana insists such a move would prompt wealthy individuals to relocate, ultimately harming the economy.

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A function of Wednesday’s mini-budget was an surprising ‘additional’ R83.5 billion in tax revenues.

FILE: South African Revenue Service (Sars) Commissioner Edward Kieswetter. Picture: @sarstax/Twitter.

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