Human rights advocacy group Black Sash has slammed the proposed VAT hike, arguing that it unfairly burdens social grant recipients who are already struggling financially.
Finance Minister Enoch Godongwana announced on Thursday that VAT will increase to 16%, with half a percentage point added this year and the remainder next year. While Treasury has introduced above-inflation social grant increases, Black Sash believes these adjustments are insufficient given the rising cost of living.
From next month, the old age and disability grant will increase by R130, while the child support and foster care grants will rise by R30 and R70, respectively. Additionally, the Social Relief of Distress (SRD) grant has been extended for another year but remains unchanged in value.
Black Sash spokesperson Oliver Meth criticized the government's approach, urging alternative tax reforms that place a greater burden on wealthier individuals and corporations.
"The child support grant remains below the food poverty line of R796, and the SRD grant has not increased. This means recipients are still unable to meet their basic nutritional needs, worsening food insecurity and poverty," Meth stated.
He warned that resorting to a VAT hike is a "short-sighted solution" that will only deepen inequality and hardship for millions of South Africans.