Da Rejects Any Proposed Vat Hike

Tensions are high ahead of Wednesdays revised budget speech, with opposition parties opposing any increase in VAT.

The Democratic Alliance DA, a member of the Government of National Unity GNU, is calling for improved revenue collection as an alternative to tax increases on an already struggling economy.

Last month, Finance Minister Enoch Godongwana proposed a 2 VAT hike to address a R60 billion budget shortfall.

DA spokesperson Karabo Khakhau says, South Africans cannot afford any VAT hike at all, any tax hike at all - whether it be VAT, personal tax, or corporate tax. We know very well that the people who are going to feel the hardest pinch of a VAT increase right now are poor South Africans and the middle class.

Poor South Africans who are mostly unemployed and are already battling to put a slice of bread on their tables. And for the middle class who are already choking in debt, defaulting on their credit payments and are unable to live a life that is one of dignity. We do not want it. The Democratic Alliance will never be in support of it.