Statement by Dr Mark Burke MP – DA Spokesperson on Finance:
South Africans are deeply overtaxed.
Budget 2026 must see adjustments in tax brackets and rebates in line with inflation.
We can’t afford another year of stealth taxes and we definitely can’t afford explicit increases.
As such, the DA expects that there will be no personal income or corporate tax hikes and definitely no VAT increases.
Soon, the conversation needs to move from what taxes will be raised to which taxes will be reduced.
The DA expects the treasury to meet its commitment from the last MTBPS where the debt-to-GDP ratio for the coming year is set to decline, rather than rise as it has been doing since 2008.
This is crucial because our country spends 22 cents of every rand on debt service costs that are now crowding out health, education and police spending.
The DA is deeply concerned by the burgeoning SOE debt and this must be halted.
Last year, Transnet alone was given another R145.8 billion in debt guarantees.
The DA looks forward to updates from the minister on key reforms announced last year to improve the quality of our spending.
How many ghost workers have been identified, their salaries frozen and criminal charges laid?
Which further programs are not adding value, where tax revenue can be saved?
We cannot afford to protect ANC pet projects that cost billions but deliver very little.
The budget should speak to how the government can improve the tax system to support small businesses and entrepreneurs.
The tax system should be used to stimulate and encourage commerce, through targeted support and lower requirements in tax administration.
The Finance Minister also needs to better use tax policy to support the financial health of South Africans.
Tax-free investment savings accounts are a critical tool to encourage healthy household reserves and the DA supports the call from the financial services sector for increased thresholds, both in annual and lifetime contributions.
South African households are characterised by high debt and low emergency buffers.
We need to more strongly incentivise savings.
On the spending side, the DA not only wants wasteful spending addressed, we also want more money reallocated to fighting the illegal and illicit economy.
We cannot hope to collect sufficient sin taxes when the state is failing to fight illegal cigarette and alcohol cartels.
Lastly, the DA hopes that the minister of finance tables a budget that is fair and sensible in its first iteration, so that we can demonstrate that South Africa is now firmly committed to fiscal responsibility.
Houston
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