- Opposition parties warn the poorest will be hit the hardest by changes to VAT rates
- Gigaba believes they have taken adequate measures to protect the poor
- The DA, Inkatha, and UDM have spoken out against the budget proposals
Finance Minister Malusi Gigaba’s budget has not gone down well with opposition parties who have warned it will hit the poor the hardest.
The Democratic Alliance, Inkatha Freedom Party, and the United Democratic movement are unanimous in their disapproval of the one percent VAT increase.
Briefly.co.za learned VAT has not been increased in over two decades, and Gigaba believes that zero-rated food items will protect the poor, but the opposition disagrees.
“What was clear and typically to be delivered by Mr Gigaba, who was at the centre of state capture, is that he asked poor people today to pay for the errors of the last nine years,” DA leader, Mmusi Maimane said.
The UDM’s Nqabayomzi Kwankwa said: “The government’s decision to increase VAT… we listened to the flimsy excuses and justifications that they gave us.”
Many believe that the budget changes show how drastic the economic situation in our country is, and the general belief is that citizens are being asked to cover for the mistakes of the ANC government.
Inkatha Freedom Party Member of Parliament Mkhuleko Hlengwa added: “This budget signals that we’re not out of the woods. There are going to be negative ramifications for the majority of the people, particularly the poor people.”
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