As the highly anticipated Budget Speech approaches, economists nationwide are closely monitoring the government’s fiscal direction.
Independent economist Duma Gqubule shared his concerns, highlighting last-minute tensions within the government. “There is drama right now. Apparently, they just called an urgent cabinet meeting. The ANC wants to increase taxes, and the DA is saying no. I predict that if they don’t cancel it and announce the tax increase, South Africans must rise against this insanity of the government.”
Gqubule, who has meticulously analysed every budget since 2018, emphasized that previous reports have consistently warned against tax hikes. “Every single budget since Malusi Gigaba’s 2018 VAT hike has stated that increasing taxes in a sluggish economy, where average incomes are declining, is counterproductive.”
He also criticized the government for contradicting its own policies. “The president claims they believe in evidence-based policies, yet they are ignoring their own budget reviews. If they proceed, they risk triggering riots like those seen in Kenya.”
Gqubule called for an urgent reconsideration. “It is absolutely unacceptable. I hope this tax increase is cancelled.”
Listen to the full interview below:
VOC News
Photo: Pixabay
