Cost of living is squeezing SA: analysts

As tax season kicked off, consumers were hit with new tariffs on electricity, water and municipal rates. Courtesy of #DSTV403

JOHANNESBURG - It's been a tough week for South African consumers.

The poor and middle class have been bearing the brunt, of the high cost of living.

As tax season kicked off, consumers were hit with new tariffs on electricity, water and municipal rates.

The burden on the South Africans is slowly increasing.

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Pieter Faber, a senior tax executive at the South African Institute of Chartered Accountants, stated it is not only the tax that is affecting the rising cost of living but additional living expenses that are affecting people's disposable income

He explained disposable income is being used to pay for things normally tax would cover.

Linda Meyer, an educational specialist at the Boston City Campus and Business College, expanded and stated there is a trend that consumers are using credit for essentials and downscaling in many basic areas of life.

READ: Sasi challenges South Africans to reinvent how we save

"People are becoming more and more despondent and their spending patterns are changing," Meyer said.

Source
eNCA