BOSA, EFF reject VAT increase in Wednesday’s budget

The party has identified R76 billion in spending cuts, including reducing state-owned enterprises bailouts, trimming the cabinet, and scrapping VIP protection for politicians. 

It has warned against the imposition of new taxes and called for more investment in infrastructure.

BOSA acting spokesperson Roger Solomons said bold action is needed to restore fiscal discipline and ensure efficient use of public funds. 

“Seventy-six per cent of South Africans run out of money before month’s end. This is the harsh reality whilst food prices are soaring and whilst you have a GNU government that continues wasteful expenditure. 

“As BOSA, we are saying we need to drive economic growth to 5% per year. The 3% target by the president is clearly not enough. It is insufficient.”

Meanwhile, the EFF has rejected a proposed smaller VAT increase and the suggestion of cutting the social relief of distress grant as an alternative to keep the grant going. 

EFF spokesperson Thembi Msane said South African Revenue Service commissioner Edward Kieswetter has advised that R800 billion can be recovered if the National Treasury invests in improving tax collection capacity. 

She says this is more than the R58 billion that would come from a VAT hike.

“The intervention of VAT increases an unfair to the poor, who are already suffering, and the EFF remains completely opposed to that as an option. We must not be ruled by a fear of deterring foreign direct investment, which will lead to corporate entities and the wealthy not making meaningful contributions to our country.”

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