The National Public Service Workers Union (NPSWU) has strongly rejected the proposed increase in Value-Added Tax (VAT) from 15% to 16%, as presented by the Minister of Finance in the latest national budget. This move, according to the union, is a regressive tax that will disproportionately affect South Africa’s most vulnerable populations, exacerbating the country’s existing inequality and worsening the economic struggles already faced by workers and their families.
As a union representing public service workers, the NPSWU is deeply concerned about the detrimental impact this tax increase will have on its members. It is anticipated that the hike will lead to a rise in the prices of essential goods and services, further burdening households that are already under immense financial strain. Public service workers, who form the backbone of this country, are already grappling with high inflation, stagnant wages, and the increasing costs of living. The proposed VAT hike will only worsen these challenges, reducing their purchasing power and overall quality of life.
The NPSWU calls on the Minister of Finance to reconsider this regressive tax increase and explore alternative revenue-generating measures that do not impose additional burdens on the working class and the most vulnerable sectors of society. The union asserts that a VAT hike is not the right approach. Instead, there is a pressing need for a more progressive and equitable tax system that takes into account the financial hardships of ordinary South Africans. Tax reforms should prioritize the welfare of workers, the poor, and marginalized communities—not further increase their cost of living.
While acknowledging the government’s recent focus on addressing wasteful expenditure and inefficiencies in public spending, the NPSWU maintains that it is unacceptable to resolve these issues at the expense of the country’s poorest citizens. Public service workers—who already endure low wages and insufficient resources to perform their duties—should not be expected to shoulder the burden of budgetary shortfalls. The government’s emphasis on efficiency must be matched by a commitment to cutting waste in ways that do not harm those least able to afford it.
Moreover, the NPSWU is increasingly troubled by the government’s failure to adequately address the needs of public sector workers. In recent years, thousands of essential personnel—such as teachers, healthcare workers, and other vital public servants—have been retrenched, further undermining public services. For example, in the Western Cape alone, over 2,400 teachers were retrenched, worsening the already high learner-teacher ratios. Despite the allocation of billions of rands to various sectors, these funds often fail to reach the workers who are the backbone of South Africa’s public services. Public service workers deserve better—they deserve a government that recognizes their contributions and invests in their future.
The proposed VAT increase, combined with stagnant wages and ongoing neglect of public sector workers, is a slap in the face to NPSWU members. The union cannot accept a future where workers are asked to make even greater sacrifices, while the wealthiest individuals and corporations continue to thrive under a system that favors their interests.
In response to these concerns, the NPSWU is prepared to vigorously mobilize its members nationwide. This will include protests, petitions, and other forms of advocacy to ensure that the voices of public service workers are heard. The NPSWU is committed to collaborating with other progressive organizations to oppose the VAT increase and demand a fairer, more just tax system. The union’s demand is simple: the rejection of the proposed VAT increase, which only perpetuates the inequality that exists in South Africa.
The NPSWU is calling on the government to prioritize the needs of the people over the interests of the wealthy and powerful. The union demands a budget that reflects the aspirations of ordinary South Africans—a budget that supports decent work, provides access to quality public services, and ensures a dignified life for all South Africans.
The NPSWU remains steadfast in its commitment to fighting for a better future for all workers. The union will not remain passive while policies that harm the most vulnerable are being implemented.
The fight for justice and equality continues. The NPSWU will not stop until the voices of workers are heard, and until real, meaningful changes are made that uplift the lives of all South Africans.
For any queries related to this article, please contact communications@npswu.org or call 079 032 4768.Written by Cde. Ayabonga Ngubane, National NPSWU PR Officer