TO hike or not?
Enoch Godongwana, runs an enviable department of Finance but lately this seems to be not the case.
Today, he will present the much vaunted Budget Speech, after it was postponed weeks ago, following disagreement on the proposedValue Added Tax (VAT) increase on cash-strapped South Africans from 15% to 17%.
The increase on proposed 2 percentage point, would have given government an additional R58 billion to the fiscus, though.
This had led to parties within and outside the Government of National Unity not finding each other, with African National Congress, now on the new Budget, demanding 0.5% VAT increase hike.
Yet on the other hand the Democratic Party says NO.
“We will not vote the budget in. We can’t support a budget that taxes South Africans heavier than they are.”
“It would have been easier if they had committed to economic reform that we can easily direct to say out of this budget, we will see growth. But we don’t have that now, so it won’t work,” the DA said.
Both the Economic Freedom Fighters (EFF) and MK Party indicated they would also oppose the VAT increase, and the latter threatening “unrest” should the hike happen.
ANC insiders said that the DA’s requirements were excessive and DA insiders said the ANC had told them to “sod off”.
Meanwhile, the ANC said following successive constructive engagements within the party and between the GNU partners, the ANC’s Caucus is confident that Minister Godongwana will table a budget that is balanced and appreciative of the difficult choices that need to be made in a low economic growth environment.
Minister Godongwana must explain how government aims to stabilise 75% of GDP debt without imposing huge tax hikes on South Africans, finish & klaar!
We await with bated breath, as the Budget Speech is outlined today, Minister, who is not everyone’s favourite lately.
Image (To or not to hike? Would today’s Budget Speech help communities who daily have to face such dire situations where water scarcity is a major headache in SA)?
