TEBOGO MOALUSI: VAT increase uproar speaks to a nation pushed too far

The recent postponement of South Africa's national budget speech, originally scheduled for February 19, 2025, has ignited widespread debate and concern across the nation. This unprecedented delay, primarily due to disagreements within the Government of National Unity (GNU) over a proposed 2-percentage-point increase in Value-Added Tax (VAT), underscores the cost-of-living crisis and South Africans expressing that they have had enough of being milked for cash, with little to no results in development and economic growth.

For the first time since the end of apartheid, the ANC does not hold a parliamentary majority and governs through a coalition with multiple parties, including the Democratic Alliance (DA). While RISE Mzansi is part of the GNU, it does not serve in the executive. "We are the overseer of the GNU within the GNU", is how my colleague and Member of Parliament, Makashule Gana, puts it.

The proposed VAT hike, intended to address revenue shortfalls and fund essential services, met fierce resistance from GNU partners and the public alike. Some argue that the increase would have broken the back of our economy and applied undue pressure on the poor, working-class and middle-class.

This resistance is not merely a political manoeuvre but reflects a deep-seated mistrust in the government's ability to manage public funds effectively and ethically. South Africans across all income levels are acutely aware of the country's history of industrial-scale mismanagement and service delivery failures. The prospect of a VAT increase, without credible assurances of proper fund utilisation, has led to a collective sentiment of "not one more cent from me will fund self-enrichment, wastefulness and theft." The people have spoken.

Over the past decade, South Africa has witnessed a tangible decline in public infrastructure and services. Cities are grappling with decay, violent crime rates remain alarmingly high, and unemployment continues to soar. These issues are not abstract; they manifest in daily hardships faced by citizens, reinforcing the perception that additional taxes would be siphoned off through corruption and inefficiency rather than addressing the nation's pressing needs – many of which are at crisis levels.

The collective psyche of the nation bears the scars of repeated disappointments. Each scandal, each instance of misappropriated funds, deepens the chasm of distrust between the government and its people. In this context, the backlash against the proposed VAT increase is not merely about the financial burden but a repudiation of a system that has consistently failed to deliver on its promises.

To navigate this crisis, the government must embark on a deliberate and transparent journey to rebuild public trust. Key steps include, but not limited to:

1. A Clear Vision and Plan: A plan for change that truthfully communicates the choices we have, the cost of each alternative, timelines, and possible outcomes. There must also be a consequence for failure and reward for success. It must be accompanied by the very best in our society tasked to execute.

2. Demonstrable Accountability: Implement stringent measures to combat corruption, ensuring that those implicated in malfeasance face real consequences.

3. Effective Service Delivery: Prioritise and visibly improve essential services such as healthcare, education, and public safety, providing tangible evidence of positive change.

4. Engaged Communication: Foster an ongoing dialogue with communities, valuing their input and addressing their concerns with sincerity and action.

Rebuilding trust is not an overnight endeavour. It requires consistent, genuine efforts to align governmental actions with the needs and expectations of its citizens. Only through such dedicated measures can the government hope to transform public scepticism into a renewed sense of collective purpose, hope and confidence. Until then, no set of bad choices will generate consensus and commitment for the People.