Locals suggest alternative ways for tax ahead of 2025 budget speech
As South Africa awaits the Minister of Finance's budget speech, Soweto residents share their thoughts on alternative revenue streams for the government.
The country is waiting in anticipation for the Minister of Finance, Enoch Godongwana’s first budget speech under the Government of National Unity (GNU) on March 12.
This follows the postponement on February 19 after parties failed to reach an agreement on the rumoured 2% increase in value-added tax (VAT).
Many South Africans came out strongly to oppose the VAT hike, despite Godongwana’s messaging about the states’ need to raise an additional R60 billion in revenue and reduce debt deficit.
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The increase of VAT will have a major impact on poor South Africans, with many struggling to make ends meet.
Soweto Urban engaged with local residents to find out how they think the government should balance the need to increase revenue with the potential impact on ordinary citizens. And what other avenues can the government use to generate revenue?
Sinethemba Zondi
“Our government can consider increasing sin taxes on items like tobacco and alcohol, which would not only generate revenue but also encourage healthier habits.”
Bokamoso Kgoale
“There should not be a need to increase VAT but since we are here they should increase the list of necessities so that ordinary citizens can live dignified lives. If the tax increases then social grants should also increase.
“Tax the rich, individuals and organisations. Reduce government employees’ salaries or reduce the number of people working there.
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“Stop bailing out failed SOEs, rather invest in small businesses. The government must strive for economic growth and not what the global north deems as economic growth.”
Xolani Sibiya
“The government can explore alternative revenue streams that do not burden struggling citizens. Taxing wealthier individuals and corporations, closing tax loopholes, and investing in sustainable industries could be viable options.
Karabo Motlokwa
“From a township resident’s perspective, it is reasonable to question the government’s priorities. Cutting the bloated cabinet, for instance, could be a good starting point.
Reducing the number of deputy ministers, who often don’t have clear roles, could help streamline the government’s structure.
Moreover, tackling inefficiencies in municipalities, such as ghost workers who get paid without working, could also free up resources.
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Some experts suggest that instead of raising VAT, the government should focus on revitalising the mining sector, particularly gold production. With gold prices surging globally, a more investment-friendly policy and streamlined regulations could unlock billions in revenue without increasing taxes on consumers.”
