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GroundUp reports that about 50 workers affiliated to labour federation Cosatu gathered outside Parliament on Monday to call for the increase in Value Added Tax (VAT) to be scrapped.
VAT was raised from 14% to 15% on 1 April. The workers also demanded that the list of VAT-exempt products be expanded to include chicken, medicines and essential toiletries and that other forms of tax be considered. “There is scope for increasing taxes on the rich, such as inheritance, estate and income and luxury VAT taxes. Government needs to manage its R1.4 trillion budget properly before increasing taxes and further squeezing the poor,” said Matthew Parks, Cosatu’s parliamentary coordinator. In a memorandum, Cosatu urged government “to consider additional ways to make up the budget shortfall”. The Minister of Finance has appointed an independent panel of experts to review the current list of items that are rated zero for VAT. The panel will “consider the most effective way to mitigate the impact of the increase in the VAT rate on poor and low-income households. The deadline for the panel’s final report is 31 July 2018. Cosatu has given government 14 days to respond to its memorandum.
- Read this report by Aidan Jones in full at GroundUp
Get other news reports at the SA Labour News home page