Today's Labour News

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vavi1Timeslive reports that confusion over the difference between a percentage increase and a percentage point increase was shown in some of the responses Zwelinzima Vavi received when he tweeted that everything would go up from Sunday due to a 7% increase in VAT.  

VAT increased on Sunday by one percentage point from 14% to 15%.  “Today the poor will start feeling the real meaning of the ‘new dawn’!  The price of everything is going up due to a 7% increase of VAT!,” Vavi tweeted.  The union leader immediately came under flak‚ with some accusing him of lying while others accused him of ‘political point scoring”.  Vavi, in good humour‚ responded:  “Hahahaha please don’t expose your ignorance but then accuse me of lying!  Go calculate the percentage of an increase from 14% to 15%.”  Chartered financial analyst Nerina Visser explained:  “Let's get this #VAThike right: it has increased by 1 percentage POINT from 14% to 15%‚ which is an increase of 7.1% in the VAT RATE.  The impact is an increase of 0.877% on what you PAY (from R114 to R115 on something that costs R100 excl. VAT).

  • Read this report in full at Timeslive
  • Read too, Vavi raises concerns over VAT increase, at SABC News

Get other news reports at the SA Labour News home page