411
COSATU Calls Budget Speech Delay a ‘Blessing in Disguise’ Amid VAT Concerns
The Congress of South African Trade Unions (COSATU) has welcomed the postponement of the 2025 National Budget Speech, calling it a “blessing in disguise” amid concerns over a proposed Value Added Tax (VAT) increase.
The budget speech, initially set for Wednesday, was delayed to 12 March. National Assembly Speaker Thoko Didiza confirmed the postponement, citing unresolved budgetary issues within the government. Minister in the Presidency Khumbudzo Ntshavheni later revealed that several Cabinet ministers, including those from the ANC, opposed a proposed two percentage point VAT hike.
COSATU Western Cape Chairperson Motlatsi Tsubane said the federation had mixed feelings about the delay. While disappointed by the uncertainty, he argued that it was evident the government had intended to push through the VAT increase. “It’s a blessing in disguise, even though it’s an unprecedented situation in Parliament,” he said.
Tsubane reiterated COSATU’s strong opposition to any VAT increase, pointing to South Africa’s high unemployment rate and struggling economy. “We are totally against a VAT increase,” he stated.
Earlier in the day, hundreds of protesters marched through Cape Town, demanding that Finance Minister Enoch Godongwana put an end to spending cuts. More than a dozen organisations, including COSATU, the South African Federation of Trade Unions (SAFTU), Equal Education, and the Alternative Information and Development Centre (AIDC), participated in the demonstration.
Speaking outside Parliament, SAFTU General Secretary Zwelinzima Vavi warned that increasing VAT would disproportionately harm poor South Africans. “VAT is a regressive tax system that will impact the poor more than the rich,” he said, as the crowd chanted: “Phantsi, VAT, phantsi.”
Equal Education General Secretary Noncedo Madubedube read out a petition demanding lower prices for food, fuel, and electricity, increased funding for public services, and an end to privatisation in state-owned entities like Eskom and Transnet.
National Treasury Deputy Director-General Stadi Mngomezulu accepted the petition, assuring demonstrators that he would deliver it to the finance minister and that they could expect a response.
The petition, first presented at the People’s Budget Assembly on Tuesday night, criticised government austerity measures, arguing that mass unemployment and hunger were more urgent issues than reducing state debt.
COSATU National Treasurer Freda Oosthuysen condemned spending cuts, stating that they affect every aspect of daily life, from policing and education to rising food prices. “Austerity measures have an impact everywhere, even when you buy a loaf of bread,” she said.
Waste picker Nomacebo Mbayo shared concerns about unemployment, revealing that she had lost her job during the Covid-19 pandemic and struggled to find stable employment since. She called on the government to create sustainable job opportunities.
Aliya Chikte from AIDC urged the government to prioritise social protection, advocating for the Social Relief of Distress grant to be converted into a permanent Basic Income Grant. “There should be no increase in VAT,” Chikte insisted.
The delay in the budget speech now provides additional time for government officials to address these concerns before its rescheduled presentation on 12 March.
Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram
For more News in Johannesburg, visit joburgetc.com
Sourced: African Insider
