The National Budget Speech, delivered on Wednesday by Finance Minister Enoch Godongwana, has faced criticism from various quarters, with many calling it unbalanced. A major point of contention is the National Treasury’s plan to increase value-added tax (VAT) by 0.5 percentage points in the 2025/2026 financial year, followed by another 0.5 percentage point increase in 2026/2027.
Speaking on VOC Breakfast on Thursday, Black Sash’s National Advocacy Manager, Hoodah Abrahams-Fayker, expressed disappointment over the VAT hike.
“Even though it’s only 0.5%, it remains a regressive tax that will disproportionately impact the most vulnerable,” she said.
While social grants have increased above the inflation rate, Abrahams-Fayker questioned whether these adjustments are truly enough to meet people’s needs.
“The child support grant remains below the food poverty line. There has been no increase in the Social Relief of Distress (SRD) grant, despite high unemployment. So, will this really make a difference? There is a need for greater investment in the people of South Africa, yet every year, the budget fails to deliver on that,” she added.
Listen to the full interview below:
VOC News
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