Parliament hears unified opposition to VAT hike as unions, political parties, and advocacy groups demand wealth tax alternatives to protect struggling South Africans.
Parties, trade unions, and lobby groups have voiced strong objections to the proposed VAT increase in the revised 2025/26 Budget, arguing that it will disproportionately impact lower- and middle-income households already grappling with financial difficulties.
“We are also concerned about not having tax brackets for lower- and middle-income workers, who, again, are struggling to cope with the rising cost of living,” Parks said. He said instead of resorting to tax hikes, the focus should be on reducing wasteful and unnecessary government expenditure and shifting towards implementing pro-growth economic policies that will drive investment and job creation.
EFF MP Omphile Maotwe earlier said the DA was wasting their time with its submission, which was not pro-poor but messaging that talked about privatisation. She accused Finance Minister Enoch Godongwana of protecting big business and the super-rich by refusing to increase corporate income tax and implement a wealth tax.
Hike Parliament Mat Cuthbert Cosatu Lisa Higginson Of Budget Justice Coalition Enoch Godongwana Omphile Maotwe Foreign Exchange Contingency Reserve Account Da Government Of National Unity Tlou Seopa Eff National Treasury Sarb South Africans Basic Income Grant Vbs Mutual Bank Government Employee Pension Fund Gnu Amandla Mobi
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