Black Sash slams VAT hike impact on grant recipients
Human rights group Black Sash says the proposed
VAT hike places an unfair burden on social grant recipients who are already
struggling to make ends meet.
Finance Minister Enoch Godongwana on Thursday tabled a new VAT rate of 16%.
Half of the percentage point increase would be factored in this year and the other half next year.
Treasury has also provided for above-inflation social grant increases.
From next month, the old age and disability grant will be R130 more, and the child support and foster care grants will increase by R30 and R70, respectively.
The Social Relief of Distress will be extended by another year.
READ: Cabinet says budget ‘will keep SA afloat’
Black Sash said while it acknowledges the increases and the extension, it questions whether these adjustments are sufficient given the VAT hike.
The organisation's Oliver Meth said the government must explore alternative tax reforms that target wealthier individuals and corporations.
"It is important to highlight that the child support grant continues to be below the food poverty line of R796, and the value of the SRD grant has not been increased.
"It's deeply concerning as it means that recipients of these grants are still unable to meet their basic nutritional needs, which just exacerbates the food insecurity and poverty issue.
"Resorting to a VAT hike is a short-sighted solution that will only increase inequality and the hardship for millions of South Africans."
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