'The streets are calling' – South Africans reject VAT increase

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South Africans have reacted negatively following Finance Minister Enoch Godongwana‘s announcement that the value-added tax (VAT) will increase to 16% by the 2026/27 fiscal year.

During his delayed Budget speech for 2025 on Wednesday, the minister stated that VAT will rise by 0.5 percentage points in 2025 and again by 0.5 percentage points in 2026, ultimately reaching 16% in the 2026/27 financial year.

“Madam Speaker, this decision was not made lightly. No Minister of Finance is ever happy to
increase taxes,” said Godongwana.

Vat increase by 0.5%, Mzansi unhappy

“We are aware of the fact that a lower overall burden of tax can help to increase investment and job creation and also unlock household spending power.”

After the budget speech ended, many South Africans took to social media to react to the VAT increase announcement.

@Real_RIvolution on X (Twitter) wrote: “We unequivocally REJECT this 0.5% VAT hike. The streets are calling. I need to get my boots ready. We shall not allow thieves to punish the poor for their state looting.”

@mxo1isi wrote: “Next year for 26/27 #BudgetSpeech2025 they’ll announce another 0.5% VAT increase for the year 27/28, then it will become a Norm that each year VAT increases by 0.5%, Watch.”

@Fit_Mandisa wrote: “Instead of 0,5% VAT they should’ve considered trimming members of the parliament, some of them are forever sleeping while serious issues are discussed. #BudgetSpeech2025”

“A person who earns R100 000 per month will pay the same VAT amount when they buy an item like the person who gets R350 per month,” tweeted @ZaBornfree.