VOX: How will the VAT increase affect your budget?
The finance minister Enoch Godongwana announced a 0.5% VAT increase in his budget speech last week. Locals chipped in how this is going to affect their budgets.
Kerry Webb: A 0.5% VAT increase might not seem much at first glance but for the average South African, it means higher prices on everyday essentials. Sure, more essential foods have been added to the basket of VAT-exempt products but most products used by everyday consumers are subject to the VAT increase.
For small business owners, it’s a challenge. Many are already struggling with rising costs and this adds extra pressure. They’ll have to absorb the increase or pass it on to customers, whi
Narina Naidoo: It doesn’t sound like a lot. Unfortunately for a single mother like myself, everything increases automatically. Costs for personal items, food and electricity are already high. How do we cope? I’m already working two jobs to survive. The poor will remain poorer and the middle class is suddenly disappearing.
Kaitlyn Bubb: I understand that the government’s intention to increase VAT for frontline workers brings some promise. However, the VAT increase over the next two years will definitely pose financial strain on individuals like myself who are juggling work and education.
As a part-time accounting student working full-time to complete my articles, the reality of managing tuition, textbooks and other study-related expenses is becoming increasingly daunting. With already tight budgets, the increase
Abel Mokgobi: The VAT increase may seem small but it’s going to hit us hard because food prices are going to increase. With an economy that’s not growing and the high unemployment rate, the poor are going to feel it the hardest. It’s going to add pressure to my already strained budget.
Viona Goliath: I feel it’s unfair to impose this increase on the working class. Where do we fit this in our budgets? Everything is increasing. We have no say. Why do we vote when things don’t get better?
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