Smaller VAT hike 'will still hit poor'
Economic justice groups say even a bigger zero-rated basket for food items will not help
16 March 2025 - 08:56
A one percentage point VAT hike over the next two years will eat into social grants that poor households depend on, say economic justice groups, warning that even the expansion of the zero-rated basket to include more goods — as announced in the budget on Wednesday — is not good news for those reliant on social welfare.
At the same time, a trade expert has cautioned that administering VAT exemptions is difficult. ..
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