Fikile Mbalula Defends VAT Increase, SA Annoyed As SG Says Cutting Ministerial Perks Won’t Help
- Fikile Mbalula has defended the Finance Minister's decision to increase Value-Added Tax (VAT) in his budget speech
- The Secretary-General of the African National Congress (ANC) stated that cutting ministers' perks wouldn't have helped
- South Africans slammed Mbalula for his comment, adding that every little bit of cost-cutting would help in the long run
Source: Getty Images
Briefly News journalist Byron Pillay has spent a decade at the Northern Natal Courier reporting on the South African political landscape, crime and social issues
GAUTENG - Cutting perks for cabinet ministers is not a solution.
That’s according to Fikile Mbalula who explained why raising the Value-Added Tax (VAT) by one percentage point over the next two financial years.
The Secretary-General of the African National Congress (ANC) made the statement during a press briefing at Luthuli House on 13 March 2025.
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Mbalula defends ministerial perks
During the briefing, which was held to show support for the budget proposals tabled on 12 March by Enoch Godongwana, Mbalula said that the VAT increase was necessary to fund government critical programmes.
He also touched on the issue of ministerial perks, something many on social media brought up before the budget speech.
South Africans suggested that if the government trimmed the cabinet size or ministerial perks, there would be no need for a VAT increase.
Source: Getty Images
Mbalula addressed this, saying that cutting ministerial perks would not save enough to fund the country’s R2.7 trillion budget. He added that there were also many cuts over the years to ministerial perks.
“Ministers used to drive cars in the range of R1 million, it was cut to R500,000. Perks like credit cards were taken away,” he said.
“Ministers are flying economy. That was cut as well from flying business locally. You only fly business internationally,” he added.
He added that while it was important to cut wasteful expenditure in government, the tax hike was the only realistic option.
You can watch Mbalula’s comments below
South Africans not impressed
The news didn’t sit well with social media users, with many saying that while cutting perks may not yield the full amount, it would still make a difference.
Antoinette Van Lill Meyer asked:
“So, because it wouldn't make up the whole amount, it's not going to be done? Maybe the so-called leaders should speak less. Every time they open their mouths; the incompetence and stupidity just pour out.”
Kolisa A Nokoyo said:
“It should still be done. Then we can talk about the shortfall.”
Clive Cox added:
“Might not be enough, but it’s a start. And it shows that people at the top are also willing to sacrifice to get the economy on the right track.”
Langutani Evans stated:
“Every cent counts. Every cent cut can go a long way to fund your deficit.”
Brendan Paul Grobbelaar said:
“It might not be enough, but it would be a great start in the right direction. There are always too many excuses and not enough action.”
Aubrey Vukeya added:
“Cut those ministerial perks and we will calculate how much we are running short of. We are tired of the government creating bigger cabinets just to accommodate hungry useless politicians.”
Michelle Naidoo stated:
“In other words. Cadres will not give up their expense perks which is costing taxpayers billions😡.”
ANC in talks with opposition parties
Sticking with the budget, Mbalula confirmed that the African National Congress (ANC) was in discussion with parties to pass the budget.
The Secretary-General of the ANC noted that they were speaking to those in and out of the Government of National Unity.
Briefly News noted that the ANC needs to find some support after Democratic Alliance stated that it wouldn't support the budget.
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Source: Briefly News
