South Africans Only Start Earning for Themselves After 136 Days of Paying for Government

South Africans are now officially working for themselves—at least in theory. On Friday, 16 May 2025, the country reached Tax Freedom Day, a symbolic milestone that highlights how much of the year citizens spend funding government through taxes.

Marked annually by the Free Market Foundation (FMF) since 1997, Tax Freedom Day represents the first day of the year that South Africans stop earning to pay the government and start earning for themselves.

136 Days of Tax Labour

According to the FMF, this year’s Tax Freedom Day arrives on the 136th day of the calendar year. That means the average South African has spent more than a third of 2025 just paying taxes—via income tax, VAT, fuel levies, and various indirect taxes.

In 1994, Tax Freedom Day fell on 12 April. Fast-forward three decades, and South Africans now work nearly five extra weeks to cover government expenses.

“Today, government salaries alone consume more of our work than the entire state budget did in 1994,” said FMF Senior Associate Professor Richard J Grant from Cumberland University.

What’s Driving the Burden?

South Africa’s tax-to-GDP ratio has risen to nearly 37%, one of the highest in the developing world. Yet citizens often feel short-changed.

Despite huge allocations for education and healthcare, many families rely on private services due to public sector breakdowns. From installing home solar systems to paying for water tanks, security companies, and medical aid, South Africans are spending more to make up for the state’s inefficiencies.

It’s not just perception—it’s economics. The fiscal multiplier, which measures the economic return on government spending, is below 1 in South Africa. This means for every rand spent by the government, less than one rand’s worth of value is returned to the economy.

Tax Increases Looming

Taxpayers aren’t catching a break anytime soon. With Finance Minister Enoch Godongwana set to deliver the national budget next week (21 May), many fear further tax hikes. After attempts to raise VAT failed earlier this year, experts believe the treasury will look to other revenue streams to plug the gap.

Economist Dawie Roodt has warned that more tax money may simply lead to more waste, not better services.

“The government is spending on big-ticket items like health and education, but we have very little to show for it,” Roodt said. “Throwing more money at the problem won’t fix it.”

What Tax Freedom Day Really Tells Us

Tax Freedom Day isn’t just a date—it’s a wake-up call. It illustrates the disconnect between what South Africans pay and what they get. And if state-owned entities like Eskom were factored into the calculation, Tax Freedom Day would be pushed back by another month.

As National Treasury eyes new ways to raise funds, ordinary South Africans continue to shoulder an increasingly heavy load—with little hope of lighter days ahead.

Motorists and Smokers Brace for New Tax Hikes in South Africa’s Budget Next Week

{Source: BusinessTech}

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