DA, COSATU opposed to prospect of tax hikes ahead of Budget Speech

CAPE TOWN - With the State of the Nation Address done and dusted, the focus will this week turn to the tabling of the national budget in Parliament. 

The Democratic Alliance (DA) said it would not support any plans to raise personal, corporate or value-added taxes, as Finance Minister Enoch Godongwana battles yet another budget balancing act in a constrained economy.

Pundits have suggested in weekend media reports that Godongwana's hand may be forced to consider hiking taxes as a means to fund the shortfall. 

But the DA's finance spokesperson, Mark Burke, said his party expected Godongwana to use this opportunity to accelerate economic reforms instead. 

"South Africans are already struggling under the cost-of-living crisis and to further burden our citizens would be completely unacceptable. The DA urges the Government of National Unity to focus on growth-oriented reforms, infrastructure investment and wasteful expenditure. We should prioritise these areas instead of imposing higher taxes."

COSATU's parliamentary coordinator, Matthew Parks, agreed that a tax burden should be out of the question. 

COSATU also warned its ally, the African National Congress (ANC), of the ramifications this could have as the country heads to the 2026 local government election.

"Such increases would plunge workers and their families, who are already bleeding from the rising costs of living and a 400 basis points hike in the repo rate, deeper into debt. A VAT increase will stoke inflation. Such hikes would suck money out of the economy when it is most needed to stimulate growth. It would send a message to society that government cares more about balancing tables and graphs than workers being able to put food on the table and pay for electricity."