ANC rejects DA resolution to block VAT increase

6 March 2018

The ANC today really showed how little they care for the millions of poor South Africans and the 9,2 million unemployed South Africans when their members of the Standing Committee on Finance rejected a resolution from the DA to amend the 2018/19 Fiscal Framework by rejecting the R22,9 billion 1 percentage point VAT hike and reducing Expenditure by R 22,9 billion.

While the ANC might have blocked the scrapping of VAT in committee, today DA Leader Mmusi Maimane led thousands of South Africans on an anti-VAT march to National Treasury in Tshwane where a memorandum was handed over to Treasury officials. In addition to this march, South Africans continue to express their objection by signing the VAT petition launched by the DA.

There is no need for the 1,0% VAT hike to punish the poor for the maladministration of the ANC as well as for the rampant state corruption over the past nine years. The DA pointed out that instead of increasing the VAT it would be entirely possible to cut the equivalent amount out of the bloated expenditure budget:

- Reduce the number of ministries to 15 with a R 122,0 million savings.

- An additional 6% reduction on all mandatory cost containment items with a R 5,3 billion saving.

- Freeze public office bearers salaries with a R 547,0 million saving.

- Freeze public servants salaries and performance bonuses with a R 50,0 billion saving

The DA also pointed out that there were assets that could be sold:

- Telkom shares with a market value of about R 7,0 billion.

- Broadband spectrum that could realise R 20,0 billion.

- Unused and unneeded State-owned land that could easily realise R 6,0 billion.

The DA will continue to fight against the increase of all taxes and VAT in particular at every step of the budget legislative process.

Issued by Alf Lees, DA Shadow Deputy Minister of Finance, 6 March 2018