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It is outrageous that the Minister of Finance, Enoch Godongwana, has ignored taxpayers’ calls and continued to impose a heavy tax burden. This is AfriForum’s response to Godongwana’s 2025 budget speech delivered this afternoon.

AfriForum maintains that the refusal to introduce cuts to government spending, despite widespread opposition to the increase in value-added tax (VAT), will now put serious pressure on all citizens of the country. Godongwana today announced a 0,5-percentage point increase in the VAT for 2025/2026 as well as an additional 0,5-percentage point increase for 2026/2027. Furthermore, Godongwana has not made any inflationary adjustments to personal income tax brackets and rebates or medical tax credits, for the second year in a row. Both these steps go against the calls of AfriForum and various experts.

AfriForum therefore calls on opposition parties and civil society organisations to take every possible step withing legal bounds to oppose the announced tax increases.

During the budget speech, the Minister argued that an increase in VAT was the “most effective way” to prevent further cuts and enable the government to pay out social grants. According to Louis Boshoff, AfriForum’s Spokesperson on finance, it is a misrepresentation of the Minister to argue that an increase in VAT was the only way out. “Several workable alternatives were proposed by various sources, but these were ignored based on the ANC’s own policy considerations,” Boshoff explains.

Proposals made for cutting expenses include, among others downsizing the cabinet and government departments; salary and benefit cuts for high-ranking government officials; the scrapping of government advertising campaigns; the cutting of travel and catering expenses; and the privatisation of state-owned enterprises.

Boshoff warns that these tax increases will lead to increased levels of tax evasion and tax avoidance. Furthermore, amid existing high unemployment levels, the emigration of many qualified individuals and entrepreneurs is expected to follow.

“Tax levels are being increased, while the average civil servant still earns R14 400 per month more than the national average salary. This is mainly driven by the hefty pay cheques of government Ministers and other senior civil servants,” adds Boshoff. “From this it is clear that no serious effort has been made to find alternative solutions.”

AfriForum calls on individuals and communities to get involved with the organisation and help build state-resistant solutions for service delivery, safety and public infrastructure.

Issued by AfriForum