No VAT increase but higher corporate and personal income tax, says Cosatu
The Civil Society Coalition is also not happy with the VAT increase, which it says makes the tax mix more regressive and hurts the poor the most
Civil society and trade union organisations strongly opposed the increase in VAT from 14% to 15% announced in the February budget and which came into effect on April 1.They made submissions during a public hearing by Parliament’s finance committee on the draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill, which contains the VAT increase.Civil Society Coalition spokesperson Neil Coleman called for the VAT rate to be returned to 14% in April next year and for the list of zero-rated basic goods to be expanded. He said the increase in the VAT and fuel levy made the tax mix more regressive, increased taxes paid by the poor and low-income households, and reduced their spending."The tax increase is projected to raise the share of VAT in the overall tax mix and hence the share of tax contributed by the poor and low-income households — this makes the tax mix more regressive," Coleman said. Alternatives to the VAT hike needed to be seriously considered.Union federation Cosatu...
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