VAT increase: Government punishing the poor says Fedusa


Fedusa met global rating agency Fitch Ratings on Wednesday to discuss the state of the South African economy and labour relations.

JOHANNESBURG - The Federation of Unions of South Africa (Fedusa) General Secretary Dennis George says the VAT increase imposed by the government will hit the poor hardest.

“Poor people spend a percent of their income on food stuff and all these kinds of things," says George.

READ: Cabinet considering expanding zero-rated VAT basket

He said the increase in VAT which government introduced was negative impact on working people and the poor.

George says this also affect their disposable income

"It seems government is punishing the poor to make up for revenue from the state,” he says.

VAT will go up 15% from 14%.

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