As the clock ticks for Finance Minister Enoch Godongwana to deliver his budget speech on Wednesday, several political parties have come out to reject any tax increase. This comes after reports that the government was planning to get more money out of tax payers to fund a projected R300 billion shortfall. This will impact VAT, personal and business taxes.

A NEW LEAF

The Democratic Alliance said they strongly opposed any tax increases. DA spokesperson on finance Dr. Mark Burke said the DA believes that the 2025 budget must be a turning point for the country's economy. "It must demonstrate a commitment to serious, fast-tracked reforms towards growth. 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 Burke. Burke added that the party strongly opposes any tax increases and does not support increases to personal income tax, corporate income tax and value-added tax. "We expect the 2025 budget to focus on unlocking infrastructure investment, policy reform that results in private sector job growth and improving efficiency through structural reforms," he said.

NO TO TAX INCREASES

Herman Mashaba's ActionSA concurred with the DA. In a statement, they said they firmly oppose any tax increases in this year's budget speech, unless accompanied by deep cuts to cabinet perks. "South Africans cannot be expected to shoulder higher taxes while state corruption and mismanagement continue unchecked. While VAT may be the most effective of the three main taxes, it disproportionately harms the poorest and most vulnerable. For too long, citizens have paid the price for government failures, from collapsing service delivery to skyrocketing electricity costs," the party said in a statement. They added, "Electricity tariffs have surged by 135% in eight years yet the average income has grown by less than 10%. Another 12.7% hike last month, approved by NERSA, has pushed households and businesses to the brink. ArcelorMittal South Africa cited unsustainable electricity prices as a key reason for shutting its long steel business, threatening up to 100 000 jobs."

COSATU has also warned against hikes to income tax and VAT. "Any tax increases will face widespread resistance, not only from Parliament but also from within the Government of National Unity," said COSATU. The DA said it has, for the last four years, called on the government to take measures to alleviate the cost-of-living crisis. "These include reform to fuel levies and a major expansion of the zero-rated VAT basket to enable lower transport costs and better nutrition."