Opposition parties oppose tax increase ahead of 2025 Budget Speech

Minister of Finance Enoch Godongwana is set to deliver the 2025 Budget Speech on Wednesday 19 February, the first since the formation of the Government of National Unity (GNU) and among the key issues to discuss include increases in taxes. Many opposition parties have called on Enoch to avoid any tax increases to ease the burden on many already struggling South Africans.

ActionSA firmly opposed any tax increases this year, unless the government cut waste such as corruption, fraud and mismanagement.

“South Africans cannot be expected to shoulder higher taxes — whether Value Added Tax (VAT), personal income tax, or company tax — while state corruption and mismanagement continue unchecked,” ActionSA’s Alan Beesley said.

Alan added that VAT was the most effective of the three taxes and it disproportionately harmed the poorest people who suffer due to government failures including poor service delivery.

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

ActionSA will not support a Budget that demands citizens to pay for state failures that continue under the Government of National Unity. pic.twitter.com/oqwrgxot68

— ActionSA (@Action4SA) February 18, 2025

The South African Communist Party (SACP) said it would outright reject the Budget Speech if there is any increase in VAT, saying it was a propaganda campaign driven by a circle within the National Treasury.

“This circle is pushing to increase VAT further after it was hiked from 14 per cent to 15 per cent in April 2018 against the explicit wishes of the working class,” it said.

The party instead wished the government would commit to tackling the high cost of living and prioritising food security over any tax increases and added that the Social Relief Distress (SRD) Grant and those who are unemployed should not be used for any form of tax increases.

The party said VAT disproportionately hurts the poor and working class, and it is a regressive tax that impacts those already enduring economic hardships.

“SACP rejects a VAT increase, stands opposed to the neo-liberal agenda of austerity” – Party statement on the forthcoming budgethttps://t.co/h5DWpm9WGz

— SACP (@SACP1921) February 17, 2025

Mmusi Maimane’s Build One South Africa (BOSA) set out a list of expectations for the first budget speech of the GNU and focused on economic growth, infrastructure growth and training of additional police officers. The party also wished for no new tax increases.South Africans are already overburdened.

There must be no increases to VAT, which disproportionately affects the poor. As such, we reject any service delivery cuts to health, education, housing, and transport—these are the pillars of a functioning society, not optional extras,” BOSA’s Godfrey Hlongwane said.