“VAT is a tax that punishes the poor to protect the powerful’s patronage,” said Reuben Coetzer, spokesperson for Free SA.
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The Foundation for Rights of Expression and Equality (Free SA) expressed deep concern over the regressive fiscal measures introduced in South Africa’s 2025 Budget, particularly the increase in Value-Added Tax (VAT), passed yesterday despite public outcry and division within the ruling coalition. The civil rights organisation advocates for a bold but deceptively simple alternative to the current economic trajectory — lower taxes, more jobs, higher growth.
This six-word principle reflects a clear departure from the state's dependency model and instead embraces a future rooted in individual empowerment, entrepreneurial freedom, and market-led development. Free SA stands for a South Africa where economic freedom, accountable governance, and community empowerment are not just aspirations — but realities.
Yet, this budget, marked by a disproportionate tax burden on working-class and low-income South Africans, is a direct affront to those values.“VAT is a tax that punishes the poor to protect the powerful’s patronage,” said Reuben Coetzer, spokesperson for Free SA.
“Raising VAT to 15.5%, and planning another hike to16%, is not just economically reckless—it is morally indefensible. Government has once again failed to consult the people it claims to serve.”
Despite commitments to fund health and education, the decision to finance these necessities through regressive taxation underscores a deeper problem: an economic strategy that places short-term revenue over long-term, inclusive growth.
It is particularly concerning that this budget was passed without the consensus of all coalition partners, revealing a worrying disregard for democratic collaboration and public accountability. Free SA challenges the government to pursue genuine, progressive alternatives — such as closing corruption loopholes, curbing wasteful expenditure, and implementing equitable tax reform that demands more from the wealthy and corporate elite.
In light of this budget, Free SA demands the following:
● Public accountability for regressive tax decisions and immediate steps to mitigate their impact on low-income households.
● Inclusive fiscal policy-making that includes meaningful public participation and transparent parliamentary processes.
● Real investment in community-driven economic solutions, especially where the state has repeatedly failed.
● Ongoing monitoring of social spending allocations to ensure resources truly reach the intended beneficiaries.
As an organisation committed to freedom, prosperity, and community, Free SA will continue to empower South Africans to reclaim their decision-making power, challenge unjust policies, and build sustainable, people-led alternatives to state failure. South Africans deserve more than survival — they deserve sovereignty over their economic futures.
The Foundation for Rights of Expression and Equality