Organisations protesting any suggested VAT hike ahead of Budget Speech
The organisations, which include trade union federations and several civil society movements, are gathered in front of Parliament to demonstrate against budget cuts.
FILE: Finance Minister Enoch Godongwana at the Land Bank media briefing, on its conclusion on the liability solution with its lenders, 9 September 2024. Picture: GCIS
CAPE TOWN - Organisations under the banner "People Against Budget Cuts" are rejecting any suggested value-added tax (VAT) increase ahead of Minister of Finance Enoch Godongwana's Budget Speech on Wednesday.
The organisations, which include trade union federations and several civil society movements, are gathered in front of Parliament to demonstrate against budget cuts.
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Godongwana's Budget Speech was postponed at the 11th hour in February, after parties in the Government of National Unity (GNU) could not see eye-to-eye on the proposed VAT hike.
The finance minister is expected to table a revised Budget Policy Statement in the National Assembly on Wednesday afternoon.
The Congress of South African Trade Unions (COSATU), which forms part of the organisations, said it's expecting Godongwana to table a pro-poor budget.
COSATU's general secretary, Solly Phetoe, said that a VAT increase is not a solution.
"If government wants to increase taxes, it must tax the rich. It must increase corporate tax to those with businesses in South Africa to create an increase in the economy of South Africa."
He said National Treasury must also ensure that municipalities are prioritised to improve service delivery.