Taxes Expected to Increase After Enoch Godongwana’s 2025 Budget Speech, South Africans Outraged
- Enoch Godongwana will deliver the 2025 Budget Speech on Wednesday, 19 February
- Concerns have been raised that taxes could be increased to cover unexpected shortfalls
- South Africans are outraged that the government continues to tax the working class
Source: Getty Images
All eyes will be on Enoch Godongwana ahead of the annual budget speech.
The Finance Minister will deliver the 2025 Budget Speech in the National Assembly on Wednesday, 19 February 2025.
With various factors that could potentially impact Godongwana’s decision, South Africans have weighed in on what they expect and what needs to change.
Tax increases possible to cover shortfalls
The minister has some tough decisions to make, as the country faces certain shortfalls. One of the areas where the government may need to find extra money is when it comes to the Social Relief of Distress (SRD) grants.
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The court recently ruled that the test the government used to determine eligibility for SRD grants was unconstitutional and exclusionary. As a result, up to 10 million more people could be eligible for the R370 monthly.
The government also has to account for the extra R30 billion for Eskom after the power utility didn’t get the tariff increase they wanted from the National Energy Regulator of South Africa. Eskom is also owed R90 billion by local municipalities and could look to the government to assist.
USA’s issues could impact SA’s budget
Pressure is also on to find billions to cover the HIV/Aids programmes, whose fund has come under threat after Donald Trump’s administration halted foreign aid funding. Trump also cut all funding to the country in the wake of allegations that terrible things were happening in the country. SA receives approximately R7.5 billion annually from local non-governmental organisations (NGOs) in the sector.
Speaking to Briefly News, economy expert Suvira Singh noted that since Donald Trump’s election, there has been a lot of volatility and uncertainty that made it difficult to deduce concise conclusions until the US president either did or didn’t do certain things he promised.
South Africans weigh in on upcoming budget speech
Social media users had their say on the speech, highlighting what they hoped the government would focus on.
Mabetoa Paulus Mauntalala said:
“Fruitless and wasteful expenditure reduction is the only thing that can save billions and hold comrades accountable for their mismanagement of funds.”
Tshepiso Koza asked:
“Reduce the number of ministers and their allowances. Can the President and his cabinet please take a pay cut and leave poor workers alone as they are struggling already?
Mahlo Thapelo stated:
“Electricity increase, food increase and now they want to increase tax. These people are really mad hey.”
TK Vee added:
“It's because our government is wasting money on unnecessary expenses and involving themselves in matters that don't need them.”
Maqhawe Bongamandla Nkuna exclaimed:
“This is absurd. Already our salaries are going to tax, which means all of our salaries will be donations😡.”
Andre Fourie said:
“Reduce the government size to close the gap. And cut exorbitant spending. Parties, hotel bills etc. It’s time to stand up against these poor plans. Are the people now the government’s slaves?”
Jaco Nieuwoudt questioned:
“Why can't they just do what households are forced to do every year; cut back on the lifestyle and expenses?”
Godongwana sets aside R11 billion during Mid-Term Budget Policy Speech
Briefly News reported that Godongwana said that R11 billion will be set aside to encourage older government workers to retire.
The Finance Minister made the announcement during the Mid-Term Budget Policy Speech (MTBPS).
He added that cabinet approved the budget which would ease the pressure on the wage bill, which stands at R298 billion.
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Source: Briefly News
