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Tax-related material on a desk
The ACDP says it expects a form of smaller VAT increase when Finance Minister Enoch Godongwana tables the budget on Wednesday.
The party says it thinks hiking the tax with a smaller percentage will not cause harm to the poor. Earlier the party was against the tax increase.
Party MP Steve Swart elaborates, “The ACDP also did not support the proposed two percent VAT increase which led to the postponement of the budget. We expect therefore, there will be smaller VAT increase in tight conditions of low economic growth. Taxpayers are correctly demanding for the value for their taxes which they do not see with power and water outages and dysfunctional municipalities. Far more needs to be done in this regard. Wasteful and excessive government expenditure needs to be reduced. In addition, in our view, the Hawks, SIU and NPA can be given additional resources to collect the billions of rands stolen through state capture and corruption.”
The DA says 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 lower VAT increase. It is one of the political parties that been vocal against the increase in VAT, saying this is to protect the poor.
DA MP Dr Mark Burke on the possible suggestions,” Today the DA outlined a six-point plan to avoid a 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 focuses on growing the economy through economic reforms. But also finding inefficiencies within government. Cutting those expenses, amalgamating 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 leader Songezo Zibi says he wants Godongwana to ensure that the poor are protected on any possible VAT increases when tabling his budget on Wednesday.
Zibi says his party is not worried about tax increase directed to those who can afford expensive luxury lifestyles.
“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 and that kind of things, you can increase to 20 percent that person has money. What you don’t want is people that really have little already suffering as a consequence.”
The leader of Build One South Africa, Mmusi Maimane says they are concerned about how 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 percent of spending on infrastructure. We must increase it to 30 percent as the National Development Plan says. We must focus on rail revitalization plan that says how do we make it easier for people to get it 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. What’s most important is that in the medium term our expectations must focus on five percent GDP growth.”
COSATU, says it hopes that Godongwana will not resort into austerity measures when tabling the 2025 budget.
The labour federation says this has put a lot of strain on the lives of workers.
Parliamentary Coordinator, Matthew Parks elaborates, “COSATU hopes that on Wednesday that the Budget Speech in Parliament that government will rise to the occasion. That they will avoid the return to the extreme of the austerity budget cuts which have really crippled public services that workers and the economy depends on. But it will also avoid the temptation to increase VAT or personal income taxes which will hurt the poor. We need to find a progressive common-sense approach to go forward to adjust unemployment rate by four to one percent employment rate. One percent economic growth and declining public services state-owned enterprises and municipalities.”
ActionSA’s MP Alan Beesley says they are not going to support any VAT increase by Godongwana .
Beesley has described any proposals for tax increases as ridiculous.
“It’s actually ridiculous to expect South Africans to pay for all the corruption and the incompetency and wastages currently going on in government and the entities. Since I have been serving on the portfolio committee and the Auditor General, I have seen firsthand how much corruption and wastages and the incompetency is in the system. I mean it’s immoral, incomprehensible that we have got a Cabinet of 75 members who live a life of opulence while 60 percent of South Africans are going to go to bed hungry tonight with such a Cabinet living a lifestyle of luxury. It’s just totally unacceptable.”
