Comrades, friends, members of the press,
We gather here today to say enough is enough. Enough budget cuts. Enough taxation of the poor. Enough elite protection. This budget is a political choice — and it is a choice against the working class.
Let us state it clearly: SAFTU rejects any increase in VAT, any austerity that guts public services, and any further shifting of the tax burden onto the backs of the poor.
1. Stop Taxing the Poor – Expand VAT Relief
VAT is a weapon against the working class. Since the increase to 15% in 2018, it has deepened poverty and inequality. SAFTU notes that illuminating paraffin and sanitary pads are already zero-rated, and we welcome that. But many essentials remain unfairly taxed.
We call for the expansion of the VAT zero-rated basket to include:
• Tampons and menstrual cups
• School uniforms
• Prepaid airtime and data
• Public transport fares
• Cooking gas
• Basic hygiene products like soap, toothpaste and toilet paper
We also demand a new VAT surcharge on imported luxury goods — yachts, private jets, designer clothing, and luxury vehicles must be taxed, not bread and public transport.
2. Tax the Rich – Not the Working Class
South Africa has gone from taxing corporations at 52% in 1992 to just 27% today. Meanwhile, the majority live on less than R1,500 a month. CEOs earn more in a day than most workers do in a year.
SAFTU demands:
• Corporate tax must be increased to at least 45%
• A wealth tax on individuals with net assets above R10 million
• A solidarity tax on high-income earners
• A mansion tax and higher transfer duties on luxury properties
• A financial transaction tax on speculative capital
• No more “creeps” for those earning over R1 million — stop giving inflation-linked tax relief to the wealthy while workers get wage freezes
3. End Illicit Financial Flows and Tax Dodging
While the government pleads poverty, over R300 billion a year is lost to tax avoidance and illicit financial flows. The AU High-Level Panel led by Thabo Mbeki estimates that $89 billion (R1.6 trillion) leaves Africa each year through corporate mispricing, much of it from South Africa. The United Nations confirms we are among the top 10 developing countries losing capital to secrecy and tax havens.
We demand:
• Full resourcing and political support for SARS Commissioner Edward Kieswetter
• Restoration of SARS capacity to investigate transfer pricing, base erosion and profit shifting
• Criminal charges against corporate tax dodgers
• A public register of beneficial ownership to expose who really benefits from tenders and financial structures
• Full transparency on corporate tax incentives and subsidies
4. Stop Corruption and Procurement Theft
The theft of public funds through procurement is not a side issue—it is central to the collapse of services. Hospitals, schools, water systems, and housing delivery are all sabotaged by tender corruption.
SAFTU demands:
• Prosecution of all who looted COVID, infrastructure, and health budgets
• Blacklisting of corrupt suppliers
• An end to politicians and civil servants doing business with the state
5. Fill Public Sector Vacancies – End the Hiring Moratorium
The Public Service Commission has warned that staffing shortages are destroying our ability to deliver basic services. These are not administrative delays — they are the product of deliberate budget cuts and a hiring freeze imposed by Treasury.
We demand:
• Immediate filling of all vacant posts in health, education, policing, and infrastructure
• Absorption of Community Health Workers, ECD and EPWP workers into the public service with secure jobs and living wages
6. Use the Public Wealth We Already Have
South Africa is not poor. The Government Employees Pension Fund (GEPF) holds over R2.3 trillion in assets. Yet these funds are trapped in financial markets, benefitting the few instead of funding mass employment and infrastructure.
SAFTU calls for:
• Strategic use of the GEPF surplus to fund housing, rail, clinics, and clean energy
• Prescribed investment rules to channel pension and insurance funds into productive sectors of the economy
• Public-led development, not privatisation or PPPs
7. A People’s Budget – Not an Austerity Trap
This is not a fiscal crisis — it is a political crisis. A crisis of cowardice in the face of elite power. A crisis of betrayal.
We call for a People’s Budget that:
• Ends austerity and funds public employment
• Introduces a Basic Income Grant of R1,500
• Launches a mass public works programme
• Rebuilds public infrastructure and services under public ownership and democratic control
Conclusion: This Is a Struggle Between Classes
This budget tells us who is disposable and who is protected. It protects the rich, punishes the poor, and weakens the state so private capital can dominate.
SAFTU says:
• Tax the rich, not the poor
• Fund dignity, not debt
• End corruption, end looting
• Expand the public sector, don’t collapse it
We stand with the People Against Budget Cuts. We call on all workers, communities, unions and social movements to unite behind a real alternative. This is class war – and we must fight it together.
Amandla!
A Statement was issued on behalf of SAFTU by General Secretary Zwelinzima Vavi.
For more details, contact the National Spokesperson at:
Newton Masuku
066 168 2157
Newtonm@saftu.org.za
