Critics Of Vat Hike Mount In Light Of Budget Speech

A Pietermaritzburg-based advocacy group is against an increment of Value Added Tax VAT . The Pietermaritzburg for Economic Rights and Dignity PMBEJD says this will put a further strain on the poor and economically marginalised.

The organisation says it would rather see a further increase of the social relief grants and old age grants as this will bring relief to households in a stagnant economy.

The views come ahead of Finance Minister Enoch Godongwanas budget speech on Wednesday afternoon.

The budget speech was postponed two weeks ago following a stalemate between the Government of National Unity's major partners, the African National Congress and the Democratic Alliance, on whether or not to increase the VAT .

The spokesperson for the PMBEJD, Sibusiso Mbotho, says the VAT increase will further burden the poor.