Calls grow for no tax hikes ahead of Budget Speech

Finance Minister Enoch Godongwana is under increasing pressure to avoid tax hikes ahead of his Budget Speech.

Godongwana will deliver this year’s Budget Speech on Wednesday at the Nieuwmeester Dome in Cape Town. It will outline the government’s financial, economic, and social priorities, detailing expenditure plans for 2025.

The minister is also expected to present proposals for revenue collection to support government programmes.

Opposition to tax increases in 2025 Budget Speech

While the minister is expected to introduce the Appropriation Bill and table the 2025 Division of Revenue Bill, the DA has called on him to focus on economic reforms that drive investment, create jobs, and reduce national debt.

“After a decade of sluggish growth and an unsustainable debt burden, the 2025 budget must be built on the best ideas from within the GNU, as South Africa cannot afford more of the same,” said DA MP Mark Burke.

“The DA, therefore, expects that the 2025 budget must focus on unlocking infrastructure investment, policy reform that results in private sector job growth, and improving efficiency through structural reforms,” he added.

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Burke warned against potential tax increases to cover revenue shortfalls, emphasising the party’s opposition to raising personal income tax, corporate income tax, and value-added tax (VAT).

“The DA will fight against any tax increases and push for a budget that prioritises sustainable growth and financial responsibility,” the statement reads.

Rising cost of living adds pressure

Burke also pointed out that South Africans are already struggling with a high cost of living, making any additional financial burdens unacceptable.

“The DA has, for the last four years, called on the government to take measures to alleviate the cost of living crisis, including reform to fuel levies, and a major expansion of the zero rated VAT basket to enable lower transport costs and better nutrition,” he said.

He added that the party is of the view that South Africa has a spending and growth problem.

“The state needs to act with a duty of care to its citizens by alleviating their financial burdens and delivering sustainable private sector jobs to the unemployed.”

Cosatu warns against burdening workers

The Congress of South African Trade Unions (Cosatu) echoed concerns about tax increases, warning that the country’s working class is already battling severe economic challenges.

“Now is not the time for a business-as-usual approach,” Cosatu’s parliamentary coordinator, Matthew Parks said.

“The economy will grow if we fix the state, stimulate growth and slash unemployment. It will not grow by squeezing already badly under-resourced public services further.”

He stressed that Cosatu opposed any tax hikes, especially for low-income earners.

“We simply cannot afford another limp budget let alone one that pickpockets workers through VAT or personal income tax hikes.”

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Parks also cautioned the ANC about the potential political fallout ahead of the 2026 local government elections..

“A VAT increase will stoke inflation. Such hikes would suck money out of the economy when it is most needed to stimulate growth.

“It would send a message to society that government cares more about balancing tables and graphs than workers being able to put food on the table and pay for electricity.”

‘Cut waste and corruption’

Meanwhile, ActionSA contended that it was unfair to expect South Africans to bear higher taxes, while state corruption and mismanagement persist unchecked.

“South Africans deserve a government that cuts waste before demanding more from taxpayers.

“No tax increase can be justified, unless government cuts waste, corruption, mismanagement and fraud. 

“ActionSA will not support a budget that demands citizens to pay for state failures that continue under the government of national unity,” ActionSA MP Alan Beesley said on Monday.

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