VAT increases are a betrayal of hardworking Western Cape residents

The decision to increase Value-Added Tax (VAT) by 1 percentage point, over the next two financial years is a betrayal of the hardworking residents of the Western Cape — especially the poor and working class.  

“This budget should not be funded at all by an increase in VAT, and I am disappointed that national government has not made the tough choices needed, particularly at the beginning of a term of office. The beginning of a term of office is the right time to make these hard decisions and implement them. Our priorities must be fast-tracking economic growth reforms, cutting wasteful expenditure and reprioritising spending. Going forward no government salary increase should ever be above the inflation rate. We must stop bailing out State Owned Enterprises (SOEs) and in fact we must dramatically cut the number of SOEs. The cost of corruption is still crippling our country,” said Western Cape Government Premier Alan Winde. 

“While we welcome the additional funding allocations to the provinces, particularly for front line services like health, social services and education, these allocations should not come at the expense of the taxpayer, rather they should come from reprioritising expenditure”, said Premier Winde. 

Western Cape Minister of Finance, Deidré Baartman said, “At a time when households are already stretched beyond their limits, any form of tax increase is unconscionable. While Minister Enoch Godongwana claims the VAT increases are to fund pressures facing provinces, particularly core frontline services such as health and education, the national government has chosen the one option that will hit the poor and middle-class the hardest. This VAT increase should not have even been an option under consideration when there were credible alternatives tabled,” said Minister Baartman.