Cape Town – ActionSA has called on Finance Minister Enoch Godongwana to use stronger-than-expected tax revenue to ease fuel costs and provide relief to households and businesses ahead of Wednesday’s Medium Term Budget Policy Statement (MTBPS).
The party also wants government to introduce a three-year moratorium on above-inflation increases in excise duties on alcohol and tobacco, arguing that repeated hikes have placed legitimate businesses under pressure while allowing illicit trade to expand.
Godongwana is scheduled to table the mid-term budget in the National Assembly on Wednesday, where he is expected to review the economic and fiscal forecasts presented in February’s Budget 2026.
ActionSA MP Alan Beesley said the government had an opportunity to respond to the rising cost of living while strengthening efforts to tackle the illicit economy.
“Ahead of tomorrow’s Medium Term Budget Policy Statement (MTBPS), ActionSA has placed immediate relief for South Africans grappling with rising fuel prices and the cost of living, alongside decisive action to tackle the illicit economy, at the centre of its expectations for the Minister of Finance,” Beesley said.
The party wants the fuel levy reduced, arguing that higher fuel prices affect the cost of food, basic goods and services because of their impact on transport and distribution.
MID-TERM BUDGET | Public finance expert Dr Nombeko Mbava says higher tax revenue could allow households some relief in the upcoming mid-term budget, as COSATU calls for urgent action on unemployment, poverty and failing public services. https://t.co/fCZFmK6lDI
— SABC News (@SABCNews) October 20, 2026
Beesley said strong revenue collections by the South African Revenue Service (SARS) gave government room to consider relief without abandoning its fiscal objectives.
ActionSA calls for action against illicit trade
The party also wants government to intensify its crackdown on the illicit economy, which it estimates accounts for 15% of gross domestic product.
Beesley said illegal trade in products such as fuel, clothing, tobacco and electronics undermined legitimate businesses, cost jobs and deprived the state of tax revenue.
“Every rand diverted into the illicit economy weakens South Africa’s ability to grow,” he said.
ActionSA argues that above-inflation increases in excise duties on alcohol and tobacco have added pressure on legitimate businesses and created further opportunities for illicit traders.
It wants a three-year pause on above-inflation excise duty increases to give businesses greater certainty and help limit the expansion of illegal markets.
Beesley said stronger enforcement against illicit trade could also help broaden the tax base by bringing more economic activity into the formal sector and recovering revenue lost to the state.
Budget support depends on relief measures
ActionSA said its support for the adjustment budget would depend on whether the government addressed the cost-of-living crisis and took decisive action against illicit trade.
“We cannot support a budget that asks South Africans to bear more of the burden while government fails to address the underlying problems holding our economy back,” Beesley said.
The demands place pressure on Godongwana to balance calls for immediate household relief with the government’s efforts to stabilise public finances and support economic growth.
The minister’s statement on Wednesday is expected to outline the government’s updated revenue and spending position, as well as its plans for managing debt and the budget deficit.
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Compiled by Glaan Sibuyi
