MEDIA STATEMENT
SADTU WELCOMES THE SCRAPPING OF VAT INCREASE
24 April 2025
The South African Democratic Teachers’ Union (SADTU) welcomes the Minister of Finance’s decisive action to abolish the proposed 0.5% VAT increase, originally slated for implementation on 01 May 2025.
This momentous decision comes in the wake of SADTU’s forceful and peaceful national march against austerity measures in Pretoria. Among the targeted departments was the National Treasury, where the Union submitted a memorandum demanding the cessation of the planned VAT increase. We challenged the Treasury to take bold measures to combat corruption, curb illicit financial flows, and hold multinational corporations accountable for tax evasion.
Had the VAT increase been enforced, it would have inflicted an intolerable burden on the poor, working-class, and middle-class families, including education and education workers. The cost of living, already exacerbated by stagnant wages and rising inflation, would have skyrocketed. Basic essentials such as food, transport, and electricity would have become even more unaffordable, plunging many families deeper into debt.
We perceive the abolition of the VAT increase as a direct response to the unified and resolute voice of the people. It demonstrates that when workers organize and speak in one voice, they can shape policy in the interest of the majority.
We extend our gratitude to our members for their participation, resilience, and revolutionary spirit. This victory belongs to all who champion social justice and economic equity.
SADTU urges the Treasury to ensure that this reversal does not result in funding cuts to key public services such as education, health, and social development. We remain vigilant and will continue to combat any austerity policies that compromise service delivery and undermine the rights of workers and the poor.
ISSUED BY: SADTU Secretariat