The National Union of Metalworkers of South Africa (NUMSA) says the looming increase in Value-Added Tax (VAT) is a serious concern for workers.

The union has convened a three-day bargaining conference which started in Sandton, Johannesburg, on Monday.

It brings together shop stewards from all nine provinces.

The aim is to consolidate the demands of workers in various sectors.

NUMSA’s General-Secretary Irvin Jim, “The fact that CPI is at three percent and traditionally the main sectors that are negotiating are sectors where we always secure three-year agreements. So, we are not going to be swayed by any ideas that we can’t negotiate, improve workers’ wages and benefits because we are facing a state of an economy that is challenged.”

The tabling of the 2025 Budget happened amid a lot of speculation around whether National Treasury would totally abandon the idea of a VAT increase altogether, with people wondering how it would balance its books, given increased government spending pressures.

In the end, Finance Minister Enoch Godongwana revealed that a 0.5 percentage point increase had been proposed to take effect from the 1st of May.

To unpack the VAT increase is Thabani Ndwandwe, Chief Risk Officer at Standard Bank: