Opposition mounts against Treasury's VAT proposal

PARTIES, trade unions, and lobby groups have voiced strong objections to the proposed VAT increase in the revised 2025/26 Budget, arguing that it will disproportionately impact lower- and middle-income households already grappling with financial difficulties.

- MAYIBONGWE MAQHINA

The concerns were raised during a joint meeting of the parliamentary finance committees yesterday, ahead of the adoption of the Budget next week.

Cosatu’s parliamentary counselor, Matthew Parks, said the labour fed- eration was quite happy with alloca- tions made to the SA Revenue Service (SARS) to help tackle tax evasion.

“We are, however, opposed to the VAT hike, and we appreciate it’s less than the 2%, but we still feel a VAT hike hits the working class, who are just simply drowning in debt, are struggling to survive, and so forth.

“We are also concerned about not having tax brackets for lower- and mid- dle-income workers, who again, are struggling to cope with the rising cost of living? P parks said.