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.

ActionSA welcomes the additional R7.5 billion allocated to the South African Revenue Service (SARS) over the medium term—an investment we have long championed. However, we reject the regressive suite of taxes and levies, particularly in the absence of meaningful action to curb government wastage.

While ordinary South Africans are still being forced to carry the burden of an extra R22 billion through income tax bracket creep, an increase in the fuel levy, and excise duty hikes, the funding boost to SARS marks a critical step in the right direction.

ActionSA was the first to put the proper funding of SARS firmly on the national agenda. As we have consistently argued, empowering SARS with the resources it needs is expected to yield between R20 billion and R50 billion in additional revenue collection annually.

In his speech today, the Finance Minister confirmed that SARS’s performance will be monitored monthly, with the potential for R20 billion in tax relief to be granted in the 2026 Budget if revenue collection exceeds targets. ActionSA is confident that SARS will deliver on this promise, helping to ease the financial pressure on struggling South Africans.

However, we remain firmly opposed to the stealth tax imposed on South Africa’s 7.5 million taxpayers via bracket creep, as well as an increase in the fuel levy. South Africans are tired of paying more while government corruption, mismanagement, and waste continue unchecked. We believe that through increased SARS efficiency and revenue collection, inflationary adjustments to personal income tax brackets can be fully funded in next year’s Budget, providing meaningful relief to millions.

At the same time, National Treasury has effectively robbed Peter to pay Paul by offsetting R4 billion of the R11.5 billion VAT increase through a hike in the general fuel levy. This is in addition to plans to exclude certain zero-rated items from the VAT basket, as proposed in Budget 2.0. Once again, the financial burden is shifted onto ordinary South Africans. Higher fuel costs will cascade through the economy—raising transport, food, and living expenses—and further entrenching the country’s deepening cost-of-living crisis.

While ActionSA notes Treasury’s stated intent to conduct spending reviews and restructure the budget process to eliminate underperforming and low-priority programmes, we stress that talk is no longer enough, decisive action is long overdue. We are deeply disappointed that there is no additional funding in Budget 3.0 to prioritise strengthening the National Prosecuting Authority (NPA), as effective prosecution is vital to restoring public trust and deterring future corruption. This corruption strangles economic growth and robs South Africans of the dignity of receiving basic services.

Budget 3.0 should have laid the foundation for long-term, sustainable economic growth. With GDP growth of just 0.8% for 2024, well below that of peer nations, South Africa urgently needs structural reform. The GNU’s downgrade of its own 2025 growth forecast from 1.9% to 1.4% is a damning admission of its failure to lead. Policy paralysis continues to worsen the unemployment crisis.

StatsSA’s latest labour force survey confirmed what every South African already knows: the economy is broken. The expanded unemployment rate has soared to 43.1%, the highest in nearly three years, with 8.23 million South Africans now jobless. 

These are not just numbers. They represent real lives: young graduates whose CVs go unanswered, breadwinners without an income, and families choosing between electricity and food. Today, tomorrow, and every day thereafter, 4,000 more South Africans are forced to go home and tell their loved ones that they’ve lost their jobs.

ActionSA will continue to lead the charge for sensible, pro-growth budgeting, proper revenue collection and a government that puts the needs of South Africans first.

Issued by ActionSA Member of Parliament Alan Beesley