Calls for tax relief as Godongwana prepares to table budget
An economist believes Finance Minister Enoch Godongwana will hold the line on taxes when he delivers his budget speech on Wednesday afternoon.
Professor André Roux from the Stellenbosch Business School says that with local government elections on the horizon, Godongwana is likely to avoid any unpleasant tax shocks.
Godongwana is expected to outline the government’s financial, economic and social commitments for 2026 when he addresses the National Assembly in Cape Town.
Roux says he expects this year’s budget process to be more inclusive and transparent, despite lingering concerns.
“We start the year with a remarkably high gold price. The rand (to US dollar) exchange rate is at its strongest level in probably five or six years, inflation is heading towards 3%, and interest rates are being managed downwards. We add to that the fact that a few months ago, Standard and Poor's gave us a slightly more positive credit rating, and we'd been removed from the so-called grey list."
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Meanwhile, the DA’s Dr Mark Burke says the minister must urgently address the country’s high tax burden.
"The fact is, South Africans are already deeply overtaxed, so we'd like to see brackets and rebates brought in line with inflation. Debt must now have peaked and start coming down, which would be the first time since 2008. We can't have any more bailouts of corrupt state enterprises, and debt guarantees also need to be brought under control.
"We need discipline and efficiency in public finances. As such, we expect more detail on ghost workers as well as the treasury's progress on targeted spending reviews."
The MK Party’s Des van Rooyen says they are not optimistic about what the budget will deliver.
"We still have poverty dominating our society, unemployment dominating growth, and it is very stubborn. So, truly speaking, it'll be naive of anyone to expect that there will be major changes coming out of the budget speech."
