Salvation Army: Social grant increase won't shield poor from VAT hike

Finance Minister Malusi Gigaba tabled a R1.67 trillion budget on Wednesday.

Picture: Supplied

JOHANNESBURG - The Salvation Army has welcomed the higher than inflation increase for social grants but says this news will be offset by the increase in value-added tax (VAT).

Finance Minister Malusi Gigaba tabled a R1.67 trillion budget on Wednesday, with an increase in VAT from 14% to 15%.

He says the move was long overdue with the country out of options.

The Salvation Army's Carin Holmes says the poor will not be shielded from such increases.

“We are grateful for everything the government is doing for people. However, we would have preferred the tax on other non-essential things. Give the poor a little more leeway as the tax has been increased.”

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