SADTU statement on the Budget Speech
22 February 2018
The budget speech brings no joy to the “missing middle”
The South African Democratic Teachers’ Union (SADTU) believes the 2018 budget delivered by Finance Minister Malusi Gigaba will increase the inequalities between the rich and poor even though it still continues to prioritize education, health and social services.
The increase in VAT poses a great risk on the buying power of poor and lower-income households, worsening poverty and perpetuating inequality. Even though basic foods will remain zero-rated, we do not live on food alone. The increase in the fuel levy will adversely affect the working class, as it will mean an increase in public transport fares which will affect the same zero rated items.
Considering that the minority in the country have large amounts of wealth which was accumulated under apartheid and passed between generations while black earners have less assets to begin with and must support a higher number of dependents, therefore failure to increase wealth tax considerably is indefensible.