The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

AfriForum warns that the country’s taxpayers are still under immense pressure despite several sober budget decisions announced by Enoch Godongwana, Minister of Finance, during his budget speech in Cape Town today.

The civil rights organisation describes the withdrawal of R20 billion in tax increases that were provisionally included in the May 2025 Budget and the adjustment of tax brackets and rebates for personal income tax in line with inflation as sober. The increase in the compulsory VAT registration threshold for small businesses from R1 million to R2,3 million is also a welcome step. However, AfriForum warns that the private sector, communities and individual taxpayers should receive more recognition for the relatively good fiscal position announced this year.

According to Louis Boshoff, AfriForum Spokesperson, increased taxes on alcoholic beverages and tobacco products are useless if they are not accompanied by better law enforcement. “They call it a ‘sin tax’, but the real sinners evade this tax. In the meantime, total tax revenue was higher than expected because law-abiding citizens paid loyally.”

Boshoff further says that the Minister wants to celebrate some successes prematurely. “The Treasury makes optimistic projections about economic growth and reduced government debt and then congratulates itself as if the projections have already materialised. Moreover, even the projections of economic growth are lower than the global average. Furthermore, the resilient private sector, not the Treasury’s fiscal policy, is primarily responsible for the current improvement.”

According to AfriForum, some sections of the budget speech are an implicit admission of state decay and failed policies. “Increased spending on health, education and transport infrastructure will not in itself improve the poor condition of these departments – the money must instead be spent wisely. A good budget cannot make up for poor governance,” concludes Boshoff.

Issued by AfriForum