House Chairperson, the ACDP said after the Budget Speech that the ship of public finances was starting to move in the right direction. That was in February.
Much has changed since then, particularly with the dramatic increase in the fuel price since the outbreak of the Middle East conflict earlier this year; and this, when taken with the increase in other costs, including electricity and water, has not only had a negative impact on economic growth prospects, but has had a devastating impact on households and businesses.
In response, the Minister introduced and has extended a temporary general fuel levy relief for petrol and for diesel in May 2026. Sadly, this temporary tax reprieve will be halved in June and entirely removed in July.
The ACDP calls on the Department of Mineral and Petroleum Resources to speedily finalise its promised review of the fuel pricing formula to determine how fuel prices are regulated going forward; and Minister, would you not consider extending the fuel temporary tax reprieve on the fuel price beyond May pending the review of the fuel pricing formula.
The ACDP also commends SARS for crossing the historic R2 trillion mark in net revenue collection (R2010.3bn) as at 31 March. This is R24.7bn higher than the 2025 Budget forecast. Well done indeed! We also welcome the fact that there are no intended tax increases.
At the same time hard-pressed taxpayers are demanding value for every rand in tax they pay. This they have largely not received to date—particularly when one considers the dismal state of most of our municipalities as pointed out by the Minister today.
The ACDP shares the Committee’s concerns that debt-service costs remain one of the largest expenditure items, crowding out expenditure on other much needed items, including health, education, fighting crime and infrastructure delivery.
In this regard, we note National Treasury’s stated commitment to fiscal sustainability and the maintenance of a primary budget surplus. We remain, however, concerned about the risks posed by lower economic growth and exchange rate volatility, as well as state-owned company support requirements and global economic uncertainty.
Lastly House Chair, we are concerned about the illicit economy which is estimated to cost the fiscus a staggering R100bn each year. We would support greater cooperation between SARS and other law enforcement agencies to disrupt and totally shut-down illicit trading networks.
I thank you.
