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Informal traders outside a mall
Informal businesses in the Buffalo City Metro in the Eastern Cape have expressed displeasure on the in the VAT increase proposed by Finance Minister Enoch Godongwana.
The Minister said a one-percentage point VAT increase has been envisaged over the next two years, meaning that another half a percentage point VAT hike could be on the cards next year after this year’s half percentage point increase.
Local hawkers say any VAT increase will have dire consequences for their businesses and livelihoods but some residents appreciated that the social relief grant continues.
“We are happy that the Finance Minister didn’t scrap the social relief grant because most of us are unemployed and dependent on this grant.”
“I want government to help us because we are struggling a lot. We need a lot of help from government. People say the stuff I sell to them is too high, that means I have to bring down my prices.”
Meanwhile, residents of Polokwane in Limpopo say the half a percentage point VAT increase proposed will further negatively affect the poor.
Some residents in Polokwane had this to say, “This thing does not make sense at all, how can you let people suffer when you have money, we must just create jobs and let the people be employed. As far as the VAT is concerned, the increase for me I am not satisfied whatsoever, the VAT increase I think it was unnecessary.”
Budget Speech 2025
