The upcoming Budget Speech is generating much discussion, particularly around the possibility of a VAT increase. Will Godongwana raise VAT from 15% to 16%? This potential hike has sparked debate, with economists arguing for its necessity to manage the constrained budget, while opposing voices warn of its impact on the working class and poor. The South African Communist Party has vehemently rejected the proposal, calling for a wealth tax instead and threatening mass mobilization if a VAT hike is announced. The Economic Freedom Fighters also oppose the increase, advocating for a return to previous VAT levels.
Ahead of the Budget Speech , VAT is dominating conversation.
“What the National Treasury must do is to introduce a wealth tax and a more progressive tax appoach, focusing on generating revenue from the rich and wealthy to fund development and key priorities, amid the high rates of inequality that characterise South Africa,” the SACP said in a statement on Monday.
The other red party, the Economic Freedom Fighters , have also rejected any move to take VAT to 16%, instead advocating for a return to previous levels.Subscribe
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