Austerity concerns rise as VAT is scrapped

VARIOUS civil society organisations have cautioned that while the government's decision to scrap the 0.5% VAT hike is a victory, it should not come at the expense of austerity measures and budget cuts that threaten public services and social support systems.

- THABO MAKWAKWA

In a joint statement, the Alternative Information and Development Centre (AIDC), Amadiba Crisis Committee (ACC), Back 2 Work Campaign, Botshabelo Unemployed Movement (BUM), Cry of the Xcluded (CryX), PE Amandla, South African Green Revolutionary Council (SAGRC), and Unemployed People's Movement (UPM) expressed their relief and disappointment in the government's recent actions.

While they welcomed this development, they emphasised that VAT is a regressive tax that disproportionately impacts the working class and low-income people.

They also criticised the government's plan to respond with spending cuts, which they argue would worsen public service delivery and social inequality.

"We reject the intention to reintroduce spending cuts in response; instead, the AIDC calls for the implementation of progressive tax and revenue-raising options and increased expenditure to address the multiple crises our people face."