Immediate Release
1 October 2025
The Foundation for Rights of Expression and Equality (Free SA) has launched a national campaign to oppose proposed government measures to tax foreign pensions, a move it warns will severely undermine the financial security of elderly citizens, damage South Africa’s attractiveness to foreign retirees, and deter the return of diaspora citizens who could bring capital, skills, and consumption back into the country.
“Retirees are not a government piggy bank,” said Reuben Coetzer, spokesperson for Free SA. “These proposals represent a short-sighted and ethically questionable attempt to raid the fixed incomes of elderly people, many of whom are already caregivers, sponsors of education, or the backbone of multigenerational families.”
The organisation’s Stop the Granny-Tax campaign highlights the wide-ranging harm that would result from taxing foreign pensions, particularly those received by expatriates who have chosen to retire in South Africa or South Africans returning from years of working abroad. These groups inject foreign currency into the local economy, buy property, create jobs, and help stabilise communities, yet now find themselves in government’s fiscal crosshairs.
Free SA argues that targeting pensioners is not only socially and morally wrong, but fiscally irresponsible. Pensioners spend locally, pay for healthcare and education, support families, and contribute to economic activity. Curtailing their disposable income will not only harm them, but also reduce overall tax revenue from VAT and other indirect streams.
The proposed removal or limitation of the Section 10(1)(gC)(ii) exemption that protects foreign pension income from taxation in South Africa has been met with fierce opposition from a growing coalition of civil society organisations, legal experts, and affected individuals.
Free SA is calling for:
● Immediate withdrawal of any legislative proposals to tax foreign pensions.
● Legal safeguards to enshrine the protection of foreign pension income in the Income Tax Act.
● Stronger constitutional or statutory protections to ensure pension funds cannot be treated as “rainy-day” fiscal reserves.
● Greater fiscal discipline and austerity in government spending instead of continuously expanding the tax base.
● Transparent, public consultations on any future pension-related tax proposals, including a mandatory supermajority threshold for approval.
● Inclusion of retirees, especially foreign and returning South Africans, in all relevant public dialogues and legislative processes.
“This is not just a tax issue, it is a question of dignity, democratic process, and the kind of country we want to build,” said Coetzer. “If Parliament and Treasury want to raise revenue, they must start by cutting waste, auditing bloated departments, and ending VIP excess, not squeezing money from the elderly.”
Free SA urges all affected South Africans, expats, retirees, and members of the public to sign the petition at www.freesa.org.za.
Media enquiries:
Anneke Burns
Free SA Publicist
071 423 0079
media@freesa.org.za
About FREE SA:
At the Foundation for Rights of Expression and Equality (Free SA), we are committed to empowering South Africans to have their voices heard. In a true democracy, every opinion counts, and we ensure your voice resonates where it matters most: in Parliament, in public policy, and in the laws that shape our country. From advocating for democracy and equality to holding government to account, we demand transparent, responsive, and fair governance that serves its people.
Visit us at: https://www.freesa.org.za