DA and COSATU oppose VAT hike

In a rare show of unity, Democratic Alliance (DA) and Congress of South African Trade Unions (COSATU) oppose government VAT increases tabled by Finance Minister, Enoch Godongwana on Wednesday as a blow to South Africans..

DA  in the Government of National  Unity  (GNU) with ANC said it won’t support 1,5% tax hike.

Both DA and  COSATU, a trade union allied to ANC expressed strong objections to VAT hike, warning of  detrimental impact it will have on the South African people.

DA Leader, John Steenhuisen firmly stated the party will not support any tax increases unless they are temporary and accompanied by major economic reforms.

He has criticised the ANC for prioritising their own interests over the economic well-being of the country, and has made it clear that the DA will not stand behind the ANC’s VAT budget.

Meanwhile, COSATU has also voiced disappointment with government tax proposals.

The Federation has called on Parliament to reject VAT hike, arguing it will place heavy burden on working-class families and further strain  already struggling economy.

COSATU  emphasised need for more progressive approach to revenue generation, including higher taxes on the wealthy and large corporations.

Both the DA and COSATU are united in their call for more equitable and sustainable approach to taxation that prioritises the needs of South African people.

COSATU and DA urged ANC to reconsider their VAT increase and to implement measures that will support the country’s economic growth and help alleviate the burden on most vulnerable members of society.