A private conversation, accidentally recorded after a media briefing on February 19, has revealed growing tension between Finance Minister Enoch Godongwana and SARS Commissioner Edward Kieswetter. The discussion showed that government leaders strongly disagree on how to handle the country’s tax system.
The briefing was meant to explain why the 2025 budget speech was delayed. Godongwana, National Treasury Director-General Duncan Pieterse, and Minister in the Presidency Khumbudzo Ntshavheni answered questions from journalists. After the event, Pieterse told Godongwana he had handled the questions well. However, Godongwana did not agree and was clearly upset. He responded, “Oh no, I was a bit worried. He is making me angry, even here he comes up with this rubbish.”
Godongwana’s anger comes from Kieswetter’s opposition to tax increases. The Treasury is thinking about raising taxes, including VAT and income tax, to fix South Africa’s financial problems. Kieswetter, however, believes the country should focus on collecting unpaid taxes instead of increasing rates. He argues that SARS can recover up to R800 billion each year by improving tax collection.
Another issue adding to the tension is the R3.5 billion set aside to upgrade SARS systems. This funding is now uncertain because of the budget delay, creating more frustration within the government.
The leaked conversation also suggested that Kieswetter’s job may not be secure. Minister Ntshavheni was heard asking, “When is he leaving?” This raised questions about whether Kieswetter will stay in his role, showing that political disagreements are affecting key government positions.
After the Budget’s postponement to March 12, Finance Minister Enoch Godongwana said that, given the country’s financial and funding challenges, the Cabinet would have to decide how to raise the additional required funds. The options included borrowing more, though there was limited room for that, further government spending cuts, or increasing taxes
In a panel discussion on Newzroom Afrika that evening, Alex Mashilo from the SACP clarified that the party was not part of any ministerial consultations regarding the national budget. Meanwhile, the Democratic Alliance (DA) strongly opposed the proposed 2% VAT increase in the budget plans. However, Minister in the Presidency Khumbudzo Ntshaveni explained that the delay wasn’t caused by one party’s opposition to tax increases, but rather was a “collective decision” by the Cabinet.
Some political parties claimed they were only informed of the tax increase on the morning of the Budget announcement, just hours before it was supposed to be presented in Parliament.
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After the Budget’s postponement to March 12, Finance Minister Enoch Godongwana stated that, given the country’s financial and funding challenges, the Cabinet would have to decide how to raise the additional required funds. The options included borrowing more, though there was limited room for that, further government spending cuts, or increasing taxes.
In a panel discussion on Newzroom Afrika that evening, Alex Mashilo from the SACP clarified that the party was not part of any ministerial consultations regarding the national budget. Meanwhile, the Democratic Alliance (DA) strongly opposed the proposed 2% VAT increase in the budget plans. However, Minister in the Presidency Khumbudzo Ntshaveni explained that the delay wasn’t caused by one party’s opposition to tax increases, but rather was a “collective decision” by the Cabinet.
Some political parties claimed they were only informed of the tax increase on the morning of the Budget announcement, just hours before it was supposed to be presented in Parliament.
Godongwana, however, said that he had informed parties two weeks earlier that tax hikes were coming, although he hadn’t revealed the full extent of the VAT increase at that time.
