IMMEDIATE RELEASE
The Federation of Unions of South Africa (FEDUSA) acknowledges the government’s decision to postpone the 2025 Budget Speech, originally scheduled for 19 February 2025. This unprecedented move reflects the complexities inherent in a coalition government, while highlighting the importance of thorough deliberation on fiscal policies that impact all South Africans.
The postponement arises from ongoing discussions within the Government of National Unity (GNU) regarding proposed tax adjustments, notably the suggested 2% increase in Value-Added Tax (VAT) from 15% to 17%. FEDUSA has consistently expressed concern over tax hikes that disproportionately affect workers and low-income households, especially amidst the prevailing economic challenges, including a crippling cost of living crisis.
We commend the government’s commitment to transparency and inclusive dialogue, as evidenced by the decision to delay the budget presentation to achieve consensus among coalition partners. FEDUSA remains hopeful that this period will allow for the development of equitable fiscal strategies that prioritise economic growth, job creation, and the welfare of all citizens.
FEDUSA stands ready to engage constructively with all stakeholders during this critical time to ensure that the forthcoming budget reflects the needs and aspirations of the South African workforce.