The South African Trade Union Congress (COSATU) has urged Parliament to use its legislative power and remove the Value-Added Tax (VAT) increase from the 2025–2026 budget.
Finance Minister Enoch Godongwana suggested a 0.5%-point VAT increase in 2025–2026 and 2026–2027 in his budget statement earlier this month.
In his presentation of the union federation’s report to Parliament on Tuesday, Cosatu’s Matthew Parks emphasized that the working class cannot tolerate tax increases.
“We feel the working class is most affected, already drowning in debt and facing financial difficulties. We are also concerned about the tax bracket not being adjusted to accommodate the lower and middle working class,” he said.
