ANC Veterans League's Snuki Zikalala warns against a budget that works against poor households

JOHANNESBURG - President of the African National Congress (ANC) Veterans League, Snuki Zikalala has warned against making poor households pay a high price for the country’s economic sins.

Facing unsustainable debt, less-than-expected revenue collection and a wide fiscal deficit, National Treasury is stuck in a tight spot to balance the books.

The tabling of the national budget stalled two weeks ago following pushback about plans to raise value added tax (VAT) by two percentage points to 17% to raise revenue.

Speaking on the sidelines of the 70th anniversary of the South African Congress of Trade Unions (SACTU) in Rivonia on Wednesday, Zikalala echoed concerns that raising tax will hit the poor hardest.

Finance Minister Enoch Godongwana is set to table the revised budget next Wednesday.

“We as Veterans League have come out to say we support the position that has been taken by COSATU [Congress of South African Unions] to say 'why don’t you capacitate SARS [South African Revenue Service] because SARS has made it very clear that if they get capacitated then they can collect more revenue, they’ll make sure those don’t pay tax are held accountable and pay tax but you don’t have to make the poor pay more tax'.”