Date: Wednesday, 21 May 2025

Time: 10:30-12:00 Venue: St George’s Cathedral, Small Hall 

Hosted by: People Against Budget Cuts

Join us for a press conference to be addressed by leaders from organised labour and community-based organisations ahead of the Budget Speech, where they will voice concerns about the prospect of deepening austerity measures.

After weeks of pressure from across the political spectrum, Treasury has abandoned its proposed 0.5% increase in VAT – a regressive tax that would have hit poor and working-class South Africans the hardest.

In its official statement, Treasury claims that unless Parliament accepts the original budget, it must “adjust expenditure” to cover the shortfall, refusing to consider alternative, progressive revenue options in the short term. Reductions in health, education, and social protection budgets would be no less damaging than a VAT increase – and could potentially be even worse.

Austerity is not fiscal responsibility – it’s a political choice. Since 2020, budget cuts have hollowed out public services. Clinics are short-staffed. Schools can’t afford textbooks or repairs. Social grants have stagnated. These cuts have already pushed millions deeper into poverty.

South Africa does not need to choose between regressive VAT hikes and budget cuts. The real shortfall this year is just R2.7 billion.

Replacing a VAT hike with cuts to healthcare, education, or social protection is not a victory – it’s a defeat for the majority of South Africans.

Come and engage with representatives of the working class to hear why they reject this false choice, and to learn about viable, progressive alternatives that put people before profits and prioritise investment in public services over austerity.

For media enquiries, contact: Busi Mtabane 083 329 7844 busi@aidc.org.za