On Wednesday 21 February the Minister of Finance Malusi Gigaba anounced a 1% increase in tax from 14% to 15%. Many have criticised the increase including MPs and civil society organisations, because of the effect it will have on the poor. The Minister and some economists are claiming that the increase will not affect the poor because there are 19 zero-rated basic food items. Surely poor people need more than just 19 food items for their daily needs such as sanitary products, school supplies, clothes and then there's also the 52c a litre increase in the fuel levy, which would affect the cost of transport for all South Africans.
Most people are unaware of the Parliamentary process and that we have a right to give input into the proposed increase. Amandla.mobi an independent, community advocacy organisation has started a petition to stop the vat increase and more than 20 000 South Africans have signed the petition. The increase will probably not affect the rich too much but it will definitely hit the poor and the working class hard.
30 000 Signatures Required - Deadline 26th February 2018
Sign the Petition - Stop the VAT Increase
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People need to speak up for the poor, they are battling to live daily. Everyone appears caught off guard being lulled into a happy period after the recent change, this is not good for the poor and destitute, agree with your call @hoosain
Hey I'm from India and our govt levied around 28% of GST on most of the products back in June 2016,thanks to some agitations govt pull back it's decision from 28 to 18% on maximum of product still it's heavy for us.
I personally think govt should not impose taxes beyond 8%,it makes maximum number of people to join in and pay the taxes,thats more beneficial for the growth of any country.
Yeah, it sucks. We, the middle class and poor will feel it most. All because of recklessness by the "leaders" of our country.
Gigaba is a liar. The high court found him to have lied under oath, and in his speech he also lied on several occasions. His claims that our VAT levy is of the lowest in the world is just plain false. Your article is very well done and much needed to raise this issue. It is helpful to all especially the poor who are being made to cough up for the corruption and loss of billions stolen by white collar criminals; both the state officials and their captured politicians must be stopped.