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The Price of Survival

What South Africa's VAT Increase Means for the Poor

By s naickerPublished 10 months ago 3 min read
The Price of Survival
Photo by Annie Spratt on Unsplash

On May 1st, 2025, a quiet shift will echo through the aisles of supermarkets, township spaza shops, and corner cafés.

It won’t come with fireworks or loud debates. But its consequences will ripple through kitchens, bank accounts, and hearts across South Africa. That shift is the increase in Value-Added Tax (VAT)—a seemingly minor percentage change that will leave a major wound in the lives of the already-struggling.

To many in the middle or upper class, a 0.5% increase might seem like an afterthought. A few extra rands on a grocery bill. A slight nudge on monthly expenses. But for the working poor—for the pensioners, the unemployed, the single mothers, the informal traders—this isn’t just a change in tax policy. It’s a disruption of survival itself.

The Smallest Things Will Hurt the Most

Picture a grandmother in a rural village who uses her pension to buy basic goods for five grandchildren. Now, her money won’t stretch as far. The loaf of bread is slightly more expensive.

The maize meal, the washing powder, the cooking oil—all a little higher. And it adds up. Not over a year, but in a week. That means smaller meals, skipped essentials, and greater stress.

This is not theory. It’s lived reality.

Those already rationing their lives by candlelight and counting every cent don’t have the luxury of shrugging off a VAT increase. For them, this isn’t economics—it’s a question of whether there’s enough to eat tomorrow.

The Myth of Fairness

VAT is often portrayed as a “neutral” tax. Since everyone pays it, the theory goes, it spreads the burden evenly. But life doesn't work like theory. When the rich and poor pay the same tax on groceries, it’s not equal. Because the poor spend a greater percentage of their income on basic goods, the impact is heavier on their shoulders.

Neutral? No. It's regressive. It's a tax that takes the most from those who have the least.

And yet, it was chosen—again.

Where Were the Alternatives?

No one denies that South Africa is in a financial crisis. The government needs revenue. The country needs economic stability. But the pressing question remains: why start with the poor?

Why not first curb excessive government spending? Why not target tax evasion in the wealthiest circles or close the loopholes that let billions leak from state coffers? Why not freeze luxury car budgets or reduce perks in government departments before turning to the mothers and fathers surviving on less than R100 a day?

Were these ideas seriously considered? We may never know.

The Cost of Not Listening

What worries me most isn’t the tax increase itself—it’s what it represents. A growing distance between decision-makers and ordinary people. A creeping numbness to the cries of the poor. We’re building policies on spreadsheets while people go to sleep hungry.

The long-term cost? Disillusionment. Resentment. A country further divided by class and opportunity. When citizens feel unheard for long enough, their trust begins to wither. That’s how social fabric unravels—not with a bang, but with a long, slow silence.

By Muhammad-Taha Ibrahim on Unsplash

We Can Do Better

This is a plea—not just to the government, but to all of us. To remember that behind every budget are real people. Real families. Real stories.

Leadership is not just about making difficult decisions. It’s about choosing compassion when it’s hardest. It’s about asking: Who pays the price? And is that fair?

We need to be a country that doesn’t balance the books by breaking the backs of the poor. We need solutions that uplift rather than punish. We need to start listening.

Because when we forget the most vulnerable among us, we lose a piece of our humanity.

About the Author:

Sammy Naicker is a South African writer who believes in giving voice to the unheard. Through honest storytelling and deep reflection, he sheds light on the unseen struggles and quiet strength of everyday people.

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About the Creator

s naicker

Writer and entrepreneur. I focus on self-help, travel, business, entrepreneurship, health and fitness.

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