As inflationary crisis passes, DA calls for tax relief for poor South Africans

20 November 2024

Today’s release by Statistics South Africa (StatsSA) of October’s inflation rate (or Consumer Price Index) is welcome news, marking the end of pressures which have burdened South Africans for several years.

Our annual rate of inflation currently sits at 2.8%, down from 3.8% in September.

Considering when inflation sat at double digits, this is great news. This attests to the economic stability brought by the Government of National Unity, which has buoyed investor sentiment, strengthened the rand and our bond markets.

This also follows S&P Global's announcement upgrading our credit rating from "stable" to "positive".

That said, for many impoverished households, prices continue to be unaffordable. Our tax burden is high across all brackets, but vulnerable South Africans need help the most.

Following this announcement, we call on Treasury to implement a targeted tax relief measures for lower income South Africans, including expanding the basket of VAT-exempt food items. This will not only assist in reducing poverty, as half of South African families cannot afford three daily meals, but help families get by and even save.

The DA is committed to inclusive, affordable economy for all.

Issued by Wendy Alexander, DA Spokesperson on Finance, 20 November 2024