Parties support Treasury's plan to address revenue shortfall through added SARS collections
The ANC, alongside some of its GNU partners and a few opposition parties, held a joint media briefing in Sandton following the withdrawal of the VAT increase.
From left ANC's Fikile Mbalula and Mahlengi Bhengu-Motsiri, BOSA's Mmusi Maimane and Good Party's Patricia de Lille during a media briefing on the withdrawal of a VAT increase in Sandton on Thursday, 24 April 2025. Picture: Alpha Ramushwana/EWN
JOHANNESBURG - National Treasury’s plan to address its revenue shortfall through additional collections from the South African Revenue Service (SARS) has been supported by various political parties, both within and outside the executive.
The African National Congress (ANC), alongside some of its Government of National Unity (GNU) partners and a few opposition parties, held a joint media briefing in Sandton following the withdrawal of the value-added tax (VAT) increase.
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While the reversal of the VAT hike is expected to create a R75 billion revenue gap over the medium term, National Treasury said enhanced revenue collection by SARS will be explored to bridge the shortfall.
Speaking at the briefing, ANC secretary general Fikile Mbalula confirmed the process to address the revenue gap will begin.
“SARS revenue collection will address the revenue shortfall but equally, budget will be reviewed to ensure that we stay close instead of the issues that we want to address.”
The government will be conducting an expenditure review Finance Minister Enoch Godongwana’s budget.
RISE Mzansi leader Songezo Zibi said this will help solve some of the issues surround the budget.
“Budgets are about expenditure priorities. What’s important enough for the government to fund? Please go and ask those political parties that have a lot to say: what are their priorities in this budget? They have never said anything.”