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SA bank notes
Labour federation Cosatu has condemned the decision by government to increase the threshold price for official vehicles from R800 000, to R1.1 million.
In a reply to a written Parliamentary question, Finance Minister Enoch Godongwana defended the decision despite growing calls to reverse it.
In his reply Godongwana added that National Treasury’s analysis confirmed that inflationary adjustment over the last five years had eroded the value of the threshold, and that prices had breached the set limit for most vehicles.
But this decision has been described as offensive to millions of South Africans.
Cosatu Parliamentary Coordinator, Matthew Parks says this is a reckless decision.
” Most galling is that Treasury gushes sympathy of politicians wanting to travel in comfort but has once adjusted the tiny R370 SRD grant from inflation since its introduction in 2020.
This callous decision by Treasury highlights a budget priority and morality crisis affecting the state, with a four billion rand allocated to provide bodyguards for politicians but only three billion can be found for small business development. Cosatu calls upon President Cyril Ramaphosa to intervene or reverse this ill-considered decision by Treasury.
Government cannot continue to impose brutal austerity budget cuts, crippling front line government services, and yet find millions to indulge the appetite of out of touch public representatives.”
