Budget sparks nationwide outrage

By Thapelo Molefe

The Budget speech has been met with widespread condemnation, with critics warning it could deepen poverty and cripple economic growth.

At the heart of the storm is the controversial VAT hike, seen by many as an attack on the working class while leaving the wealthy and big corporations largely untouched. 

With South Africa facing a 32.8% unemployment rate and sluggish economic growth, the Budget has fueled a political battle that could define the country’s economic and political trajectory for years to come.

The Congress of SA Trade Unions expressed “extreme disappointment”, particularly condemning the proposed 0.5% VAT increase in both 2025 and 2026. 

“These tax hikes will now make the lives of millions even more difficult,” said Cosatu Parliamentary coordinator Matthew Parks. He called on Parliament to reject the increase and instead pursue more progressive revenue measures.

While Cosatu welcomed the expansion of zero-rated VAT items to