Since the minister of Finance Enoch Godongwana announced that Value added tax(VAT) will increase, some other politicians oppose the decision.
Parties such as EFF, DA and Mk have expressed their thoughts regarding the matter as they don’t think it is right time to increase VAT at such economy.
That alone has also cost the tension amongst the members of cabinet as some support the decision while others are against the decision.
Minister in the Presidency Khumbudzo Ntshavheni explained why she support the rise of VAT.
She said “The tax increases are going to finance sustainability of this country by maintaining 1,000 teachers in the classrooms, 9,300 health workers in their jobs, the employment of 800 community service doctors, and allow an additional 700,000 children of the age of four years to access early childhood development which is necessary.”
It was held on Wednesday night, just hours after Finance Minister Enoch Godongwana delivered his revised budget.
The proposed percentage point VAT increase split over two years was among the talking points.
Ntshavheni went on to emphasize that increase will not impact the fuel levy but rather boost social grand towards old ages.
She said “No increase in the fuel levy, above-inflation increases to social grants with old age and disability grants increasing by R130 to R2,315 by 2025.
“Significant funding allocation to PRASA to improve passenger rail transport, which will reduce household income spent on transport costs.”
Zwelinzima Vavi, who’s with the trade union federation SAFTU, has described lifting VAT as an insult to the working class.
He said “It’s an insult to the working class. Everybody knows that VAT is the most aggressive tax; it targets the poor and the working class more.
“The government is telling us that it seeks to resolve all of the crises created by capitalism, by mismanagement, corruption, and the perks of the workers.”
BY LUCKY SEANEGO
