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DA opposes VAT hike

Democratic Alliance (DA) says it is opposed to 1% Value Added Tax (VAT) hike since it is influencing the livelihoods of 9.2 million jobless and poor South Africans.

DA Shadow Minister of Social Development Bridget Masango said her Party is constantly opposed to VAT increase, saying [we] took the fight to the National Treasury.

“We went to the VAT public hearings held on Wednesday before Parliament’s Standing Committee on Finance where we emphasised our situation to scrap the 1% hike,” said Masango.

Rather than increasing VAT, said Masango it is possible to remove the equivalent amount out of the bloated expenditure budget through interventions, for example, reducing the number of ministers to 15, freezing salaries and bonuses of senior public sector employees, selling Telkom shares and unused state assets.

“I led the attendance at the public hearings because of social grants beneficiaries will be among the biggest losers of the VAT hike. The above-inflation increase of social grants, child grants, isn’t sufficient to facilitate the impacts of the VAT increament,” said Masango.

Masango said the DA has noted the decision to review the zero-rated item list.

“While this is an appreciated decision and will go some route in easing the repercussions of this hostile to poor VAT increament in the past, this list has not always been a true reflection of the items that poor and vulnerable need for sustenance,” added Masango.

DA encourages South Africans to keep on expressing their dismay at the VAT increament by signing the VAT petition launched by the DA –

South Africans will have the last say in the 2019 elections, where the ANC government should answer at the voting booth on why it passes the tab to citizens to pay for its widespread and deeply rooted corruption.

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