Recently the government’s undelivered budget speech was shared, with numerous discussions circulating around the proposed two percentage point VAT increase. This sparked immediate concern among South Africans across various social media platforms.
We were relieved to hear that finance minister Enoch Godongwana was sent back to the drawing board, as the implications of the VAT increase would have had severe consequences for the average South African. With food prices rising, many families are already struggling to make ends meet, so the hint of further burdening them through a tax increase is totally unacceptable.
Despite repeated promises, the reality is that our government has failed to deliver meaningful change for the most vulnerable in our society, especially our children. In April 2018, when the first increase on VAT was implemented, we were told that it would lead to greater funding for education and poverty alleviation. Despite these assurances, we continue to see underfunded schools, neglected infrastructure and the persistent cycle of poverty affecting millions.
One example of this is some schools in Limpopo recently turning to parents to contribute towards teacher training. This is very unfair, as parents themselves are struggling to keep their heads above water. Yet instead of addressing these issues, the government continues to allow corruption to drain vital resources that could be better used to fund education and support our children’s futures.
The latest statistics on corruption are devastating and shocking. Almost three years ago, the DA made claims that corruption costs South Africa R800m a day. Though the claims were not substantiated, a report by Corruption Watch estimated that corruption costs the South African economy billions every year, worsening the challenges faced by the most vulnerable members of society.
Even though the government has repeatedly promised to fight corruption, the progress made has been slow, making President Cyril Ramaphosa’s GNU “pledges” ring hollow when corruption continues to drain vital resources from the public sector. In fact, government inefficiency, a lack of accountability and poor spending on infrastructure projects have been identified as the biggest ways the state is bleeding money.
According to reports by the auditor-general, national government departments and state-owned entities are responsible for billions lost to wasteful expenditure, with little to no consequences for those involved.
We are being held hostage by poor governance, and the funds lost through corruption are funds that could be used to address the challenges facing countless schools, children and families. The government has been promising to eradicate corruption since the early days of democracy in 1994, when Nelson Mandela and the ANC took power. If anything, it has gotten worse over the years.
The public service anti-corruption strategy, Special Investigating Unit (SIU) and various anti-corruption task forces were established to prevent and investigate corruption. The Zondo commission, the most high-profile effort, exposed large-scale state capture, implicating top government officials and private-sector players. However, while the findings were damning, very few prosecutions have followed. Unfortunately for us, the scourge runs too deep and the rot cannot be removed at the surface level alone.
It’s time for a drastic shift in approach, and for the government to invest its energy into really curbing corruption, starting with procurement reforms and holding more corrupt officials accountable
It’s time for a drastic shift in approach, and for the government to invest its energy into really curbing corruption, starting with procurement reforms and holding more corrupt officials accountable.
A two percentage point VAT hike may not seem like much on paper but when you consider the compounded effect on daily expenses, it’s a lot for many families who are scraping by to make ends meet. This time it’s vital that we demand that the burden not be placed on the shoulders of working-class citizens who already face significant financial strain.
Instead of targeting the poor with tax hikes, it’s high time the government consider taxing the wealthiest South Africans and large corporations that have seen significant profits from government tenders. Why should the tax burden be placed on those who can least afford it? South Africa's wealthiest individuals and corporations can — and should — contribute more to the public purse.
A “rich tax” could generate significant revenue without exacerbating the struggles of the average citizen. Not only would this help address inequality but it would also create an opportunity to better fund critical sectors like education and health care.
If the government is serious about fixing the economy, it needs to prioritise the creation of sustainable jobs that offer more than just a temporary paycheque. Through corporate social responsibility, businesses can and should step up — not just in terms of investment but by providing jobs, training and opportunities to South Africa's youth.
While the government continues to make promises, the reality on the ground tells a different story. Our children, our future, deserve more than empty words — they deserve action. The government must shift its focus and prioritise the needs of our children. They deserve an education system that works, a future free from hunger and poverty, and a government that delivers on its promises.
As Mandela wisely said, "Education is the most powerful weapon which you can use to change the world." But we need to start by ensuring that the next generation has the resources they need to succeed — not just in words but through real action.
We are calling for accountability from those in power and will continue to advocate for prioritising families and for increased funding to our schools.
• Goitsemang Matlhabe is the spokesperson for Feed Our Kids
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