The budget speech was postponed for good reason.
Image: Letter to the Editor
Jasmine Uys, Surrey Estate
For the first time in 30 years, the budget speech was postponed. And I think, with good reason. With food prices rising all the time, unemployment, and sky-high electricity prices, how can the poor man afford to pay 17% VAT?
Imagine what it will do to electricity prices that are already unaffordable. Why do we have to pay VAT on electricity too? Another problem is the levy on petrol. If they increase the levy on petrol, with the already sky-high fuel prices, will it be worth it to travel to work, if you stay far from your work?
At the end of the day, people will only work for travelling money, and maybe a unit or two of electricity. While the government has a shortfall of millions, even billions, whose fault is it that they are not able to balance their books? Why punish the innocent taxpayers for their inability to balance their books.
South Africa is a small and poor country with the biggest cabinet, and of course, the few taxpayers pay for their salaries, fuel, security, homes, plane tickets, and even parties? Another thing is this, correct me if I am wrong, but I believe, Lotto winnings are tax free? Time and time again we hear of one person that won the jackpot of a few million.
Imagine how much tax they would get if that money was taxable. Why not make Lotto winnings over R1mil taxable? Especially seeing we have so few taxpayers.
The government should look for other ways to get the shortfall instead of punishing the poor man in the street for their mistakes.
Note: The budget speech by the Minister of Finance Enoch Godonwana had been postponed after the members of the Government of National Unity (GNU) had disagreed with a proposed 2% increase in Value Added Tax (VAT). The minister later announced a 0.5% increase in VAT for this year.