411
Cutting Costs, Not Raising VAT: A Plea for Government Reform
With South Africans already burdened by economic challenges, a proposed VAT increase could have devastating consequences, particularly for the poor. Ahead of the Budget Speech 2.0, columnist Gasant Abarder argues that instead of squeezing taxpayers further, the government should focus on cutting its bloated executive and civil service.
One of the most glaring inefficiencies, according to Abarder, is the continued existence of the Minister of Energy and Electricity, Dr. Kgosientsho Ramokgopa. Despite his recent apology for Stage 6 load shedding, Abarder argues that apologies are meaningless when long-term infrastructure planning appears nonexistent. While the power grid was momentarily stable, there has been little progress toward sustainable energy solutions.
The frustration is heightened by rising living costs. A simple jar of instant coffee now costs significantly more, and the possibility of a VAT increase makes essentials even more expensive. For the middle class, it’s an inconvenience, but for the poor, it could mean economic disaster.
Abarder points out that the government needs to generate more revenue, but higher taxes on already overburdened citizens are not the answer. Instead, he calls for significant budget cuts, starting with a drastic reduction in the oversized Cabinet. Firing ineffective ministers, eliminating excessive perks, and reducing unnecessary expenditures—such as extravagant convoys, luxury banquets, and free housing—would help redirect funds to essential services like healthcare, education, and infrastructure.
Public institutions like GF Jooste Hospital in Manenberg and schools such as Beauvallon Primary in Valhalla Park continue to deteriorate while government officials enjoy lavish privileges. Abarder challenges ministers to lead by example—drive modest cars, send their children to public schools, and use public hospitals. Only then can they understand the struggles of everyday South Africans.
The situation with SASSA pension payments further illustrates the disconnect between government and the people. Reports of elderly citizens being turned away due to service limitations highlight a system that fails its most vulnerable.
Abarder’s message is clear: South Africans deserve a government that prioritizes the people over political excess. Instead of increasing VAT, the government should cut wasteful spending, restore public trust, and implement reforms that benefit the majority, not just the privileged few.
Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram
For more News in Johannesburg, visit joburgetc.com
Sourced: Capetown ETC
