VAT increase unjustifiable, says SAHRC
South African Human Rights Commission (SAHRC) says the increase in value-added tax (VAT) is a threat to the human rights of the poor and cannot be constitutionally justified.
In February, the government announced that VAT would increase by 1% from 14% to 15% from April 1. This was the first VAT increase since 1993.
The commission says South Africa remains one of the most unequal countries in the World.
According the 2017-2018 Equality Report, released on Thursday, poverty has increased in recent years and inequality within population groups has also grown.
Researcher Shanelle van der Berg says the commission understands government had a R50 billion shortfall in its budget and difficult fiscal decisions had to be made.
"However, the issue of the basket zero-rated exempted goods and as well as the expansion of the social protection system should have been investigated before an increase in VAT," says Van der Berg.
Although social grants were increased to mitigate the increase in inflation and VAT increase, she says the most a social grant increased is by R100.
"That is simply not enough. We have to bear in mind we have a social projection gap South Africa, in that able-bodied adults who are not care givers do not receive social grants."
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