During a recent interview on SABC News, Annaline van der Poel, Chief Legal Officer at Debt Rescue, discussed the significant pressures surrounding the third tabling of Budget 2025 by Finance Minister Enoch Godongwana.
She welcomed the confirmation that VAT will not be increased, calling it a relief for consumers, but warned that the government may turn to new tax brackets and higher personal income tax, which would have a devastating impact on many households. She also noted that sin taxes are likely to be raised, further straining consumer budgets.
Van der Poel stressed that the Finance Minister has very little room to manoeuvre, given the need to balance fiscal discipline with the rising cost of living, political pressures from the newly formed Government of National Unity, and declining tax revenues.
She discussed the impact of global instability including ongoing wars and trade tariff hikes on South Africa’s economy. While the Rand has stabilised and oil prices look favourable, she pointed out that these small gains are overshadowed by reduced investment, weak growth, and limited job creation in South Africa.
On the unemployment crisis, she described the current 32.9% rate as devastating, especially with some provinces exceeding 50%. She warned that more households are falling into over-indebtedness, increasingly dependent on insufficient social grants, and struggling to put food on the table.
Van der Poel also raised alarm over the rise of illegal lending practices. As more consumers are denied access to formal credit due to over-indebtedness or bad credit ratings, they turn to unregistered loan sharks, who charge excessive interest and use threatening, unregulated methods. This, she said, is worsening the debt spiral for already vulnerable South Africans.
To hear all of Annaline van der Poel’s insights and analysis, watch the full interview on SABC News here:
