Mthuli tax climbdown fails to save the poor

TREASURY has been forced to retreat on the proposed 2026 tax measures after intense pressure from legislators and business groups, but critics say the reversal largely favours capital and investment, leaving low-income earners exposed to a rising cost of living. 

Finance minister Mthuli Ncube reversed or deferred several controversial tax proposals after a marathon parliamentary sitting last Wednesday that stretched past midnight, during which MPs warned the measures will stifle economic activity in a fragile economy. 

While Treasury retreated on taxes affecting investment and offshore financing, economists argue that the revised package offers little relief to workers and the poor, who continue to face stagnant wages, indirect tax pressures and an unchanged low-income tax-free threshold. 

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