UASA Media Release: 19 February 2025
Image source: www.news24.com
Statement by Abigail Moyo, spokesperson of the trade union UASA:
UASA notes with concern and dismay the postponement of the National Budget Speech by the Minister of Finance, Enoch Godongwana, due this afternoon.
The Budget is the first under the Government of National Unity (GNU), which means Godongwana had to consider not only the African National Congress (ANC) and its alliance but also the coalition parties that are part of the GNU.
The decision to postpone – an unprecedented move in democratic SA – followed the GNU’s failure to agree on hiking the VAT rate from 15% to 17% as the Budget proposed, and the Cabinet failed to sign it off earlier today.
Godongwana said National Treasury had proposed to raise the VAT rate to:
- Fund public sector wage increases for our civil servants.
- Expand early childhood development opportunities for our children.
- Retain the teachers, doctors, and essential frontline workers who serve our communities.
- Revitalise our commuter rail system to serve working-class families better.
- Provide above-inflation increases to social grants for our most vulnerable.
While addressing our country’s economic and financial situations with viable solutions is vital, UASA believes that increasing VAT is not practical for consumers already bent over backwards carrying the cost of living crisis.
The government must stop resorting to emptying the pockets of fellow South Africans each time it tries to find a way out of its financial mess. Corruption and mismanagement of funds remain the biggest downfall of our government and economy, which must be addressed urgently.
The government must find ways to downscale and cut down on unnecessary expenditures to salvage the economic crisis that has befallen our country. Taxpayers’ money is not the only way out of every challenge.
The Budget Speech will be tabled on 12 March.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.