NGOs: VAT hike would leave GBV survivors in the lurch
Gender-based violence shelters across South Africa have warned that a two percentage point increase in value-added tax could have a devastating impact on the survivors of abuse.
The National Shelter Movement of South Africa (NSMSA) says the VAT hike would further strain already underfunded shelters, forcing them to turn away people in desperate need of safety.
The NSMSA, which supports over 100 shelters nationwide, argues that the government has a duty to prioritise funding for GBV shelters, just as it does for social grants.
Since its inception in 2008, the organisation has repeatedly raised concerns about the immense burden shelters bear in providing critical support to GBV survivors without sufficient financial or structural backing from the government.
Instead of increasing support, the organisation says the government has steadily cut funding, leaving shelters overwhelmed and struggling to accommodate the growing number of victims seeking refuge.
This ongoing neglect, according to NSMSA, puts the safety and well-being of survivors at even greater risk.
Finance Minister Enoch Godongwana is set to deliver the revised budget on Wednesday.
It was postponed last month due to a dispute over the proposal to raise VAT from 15% to 17%.
The National Coordinator for NSMSA, Anisa Moosa, said the government must acknowledge its responsibility to provide shelter for abused women and children.
"Already struggling with inadequate and inconsistent funding, skyrocketing costs, and delayed government disbursements, shelters fear they may be forced to scale back essential services or even turn away desperate survivors with nowhere else to go.
“When we request funding, it is never for excess but only to meet the urgent needs of survivors who rely on us for safety, healing, and a chance to rebuild their lives.
“Yet, shelters face chronic underfunding and delayed government payments, which deepen the financial strain and create uncertainty," said Moosa.
At the same time, the Nisaa Institute for Women’s Development warned that the VAT increase would make running shelters even more difficult.
"A 2% VAT increase will affect so many elements of our services that we may be forced to reduce the number of beneficiaries. And what makes this possibility even more worrying is that electricity prices are also set to increase.
“These will all add to basic shelter costs and impact skills development and other crucial programs."
Shelters say the combination of a VAT increase, rising costs, and delayed government disbursements could ultimately sabotage survivors’ rehabilitation and reintegration into society.
The NSMSA is calling on the government to reconsider the proposal and provide greater financial support to GBV shelters instead of imposing further economic strain on essential services.
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