20°C / 22°C
  • Fri
  • 25°C
  • 9°C
  • Sat
  • 28°C
  • 13°C
  • Sun
  • 27°C
  • 13°C
  • Mon
  • 29°C
  • 12°C
  • Tue
  • 27°C
  • 13°C
  • Wed
  • 29°C
  • 12°C
  • Fri
  • 16°C
  • 7°C
  • Sat
  • 17°C
  • 10°C
  • Sun
  • 18°C
  • 12°C
  • Mon
  • 20°C
  • 11°C
  • Tue
  • 16°C
  • 11°C
  • Wed
  • 16°C
  • 12°C
  • Fri
  • 27°C
  • 10°C
  • Sat
  • 30°C
  • 14°C
  • Sun
  • 29°C
  • 15°C
  • Mon
  • 31°C
  • 14°C
  • Tue
  • 29°C
  • 14°C
  • Wed
  • 32°C
  • 14°C
  • Fri
  • 28°C
  • 11°C
  • Sat
  • 30°C
  • 15°C
  • Sun
  • 30°C
  • 14°C
  • Mon
  • 29°C
  • 15°C
  • Tue
  • 30°C
  • 14°C
  • Wed
  • 30°C
  • 14°C
  • Fri
  • 21°C
  • 14°C
  • Sat
  • 21°C
  • 16°C
  • Sun
  • 23°C
  • 15°C
  • Mon
  • 22°C
  • 19°C
  • Tue
  • 29°C
  • 19°C
  • Wed
  • 23°C
  • 19°C
  • Fri
  • 17°C
  • 10°C
  • Sat
  • 17°C
  • 11°C
  • Sun
  • 18°C
  • 10°C
  • Mon
  • 20°C
  • 10°C
  • Tue
  • 17°C
  • 13°C
  • Wed
  • 18°C
  • 12°C
  • Fri
  • 16°C
  • 4°C
  • Sat
  • 21°C
  • 4°C
  • Sun
  • 22°C
  • 6°C
  • Mon
  • 23°C
  • 7°C
  • Tue
  • 15°C
  • 9°C
  • Wed
  • 17°C
  • 10°C
  • Fri
  • 14°C
  • 10°C
  • Sat
  • 18°C
  • 10°C
  • Sun
  • 18°C
  • 10°C
  • Mon
  • 18°C
  • 11°C
  • Tue
  • 15°C
  • 11°C
  • Wed
  • 16°C
  • 11°C
  • Fri
  • 29°C
  • 12°C
  • Sat
  • 32°C
  • 15°C
  • Sun
  • 31°C
  • 17°C
  • Mon
  • 32°C
  • 15°C
  • Tue
  • 31°C
  • 15°C
  • Wed
  • 33°C
  • 16°C
  • Fri
  • 22°C
  • 7°C
  • Sat
  • 24°C
  • 9°C
  • Sun
  • 30°C
  • 12°C
  • Mon
  • 29°C
  • 10°C
  • Tue
  • 29°C
  • 13°C
  • Wed
  • 27°C
  • 15°C
  • Fri
  • 26°C
  • 10°C
  • Sat
  • 28°C
  • 13°C
  • Sun
  • 29°C
  • 15°C
  • Mon
  • 30°C
  • 13°C
  • Tue
  • 30°C
  • 12°C
  • Wed
  • 34°C
  • 13°C
  • Fri
  • 17°C
  • 8°C
  • Sat
  • 16°C
  • 9°C
  • Sun
  • 17°C
  • 9°C
  • Mon
  • 20°C
  • 8°C
  • Tue
  • 17°C
  • 10°C
  • Wed
  • 18°C
  • 10°C

Unions furious with Treasury's move to hike VAT rate

Finance Minister Malusi Gigaba says the government had little option in the matter. It is the first VAT hike in 25 years, and the first by an African National Congress (ANC) government.

FILE: Saftu secretary-general Zwelinzima Vavi. Picture: Bertram Malgas/EWN

CAPE TOWN – Unions have reacted angrily to the increase in the value added tax (VAT) rate from 14% to 15%, saying that it will punish poor people.

Finance Minister Malusi Gigaba says the government had little option in the matter. It is the first VAT hike in 25 years, and the first by an African National Congress (ANC) government.

Gigaba’s maiden Budget, tabled on Wednesday, also included spending cuts across government of R85 billion over the next three years to help rein in the national debt, meet a revenue shortfall of more than R40 billion and cover the cost of phasing in fee-free higher education and training.

In a briefing ahead of his Budget speech, Gigaba defended the decision:

“VAT has the least effect on the poor than other tax measures that we could have announced and has the least effect on growth.”

WATCH: Budget 2018: How you will be taxed

But unions are furious.

The secretary-general of the South African Federation of Trade Unions, Zwelenzima Vavi, says that workers and the poor are being punished for years of mismanagement of the economy under former president Jacob Zuma.

“The VAT increase… is such a double insult to workers, who are now being asked to clear the mess created by the very person who is reading the Budget.”

Cosatu’s Matthew Parks says that politicians and their friends looted the state and now workers were being asked to foot the bill.

Gigaba also announced small but higher than inflation increases to social grants in a bid to cushion the impact of the VAT hike.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus