Political parties suggest alternatives to proposed VAT increase

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3 minutes

The Democratic Alliance (DA) says Finance Minister Enoch Godongwana should follow what it calls a six-point plan it has crafted, a guide in preventing tax increase when tabling the budget.

The party made these sentiments as part of outlining its expectations on the reported reduction of VAT increase.

It is one of the political parties that have been vocal against increase in VAT, saying this is to protect the poor.

DA Member of Parliament Dr Mark Burke, says, “Today, the DA outlined a six-point plan to avoid VAT increase and get to the budget that focuses on jobs and growth. We are not convinced that there is this dichotomy between higher taxes and austerity budget that focuses on spending cuts for frontline services. The DA will remain realising our focus on growing the economy through the economic reforms, but also finding inefficiencies within government. Cutting those expenses, amagalmating and burning the departments that make no sense. And, if we are able to do that, we will see this economy firing again and we will not have to burden South Africans to do that.”

Rise Mzansi is also against the VAT increase. Party leader Songezo Zibi says he wants Godongwana to ensure that the poor are protected on any possible VAT increases.

Zibi says his party is not worried about tax increase directed to those who can afford expensive luxury life styles.

“There must be very clear measures to protect the poor. First of all, so that is the starting base and that means we must for instance expand the number of goods that are exempt from VAT, especially those that are relevant to the very survival of people. I think raising revenue from luxury purchases, somebody who is buying a Gucci bag, you can increase to 20%, that person has money. What you don’t want is people that real have little already suffering as a consequence,” says Zibi.

VIDEO | The MK Party has also calls for alternatives to the VAT increase :

Economic growth

Leader of Build One South Africa, Mmusi Maimane, says they are concerned about how the Minister Godongwana is going to devise a sustainable plan for economic growth.

He says issues related to economic growth should be in line with the goals of the National Development Plan 2030.

“We need to focus on the growth agenda, that’s increasing what is already below 15% of spending on infrastructure. We must increase it to 30% as the National Development Plan says. We must focus on the rail revatilisation plan that says, ‘how do we make it easier for people to get to work?’ And ultimately, we got to ensure that we have got the public private partnership that expands infrastructure, so we can fund for growth. Most important is that in the medium-term, our expectations must focus on 5% GDP growth.”