Don't unfairly burden the poor with tax increase: Vavi

The South African Federation of Trade Unions says government should put more effort into acquiring cheaper, generic vaccines. Saftu General Secretary Zwelinzima Vavi spoke to Tumelo Mothotoane. Courtesy #DStv403

JOHANNESBURG - The South African Federation of Trade Unions has rejected suggestions to increase VAT to fund COVID-19 vaccine procurement.

"We are rejecting the suggestion, which we know may be in the Treasury's mind, that the poor are going to be the ones who are asked to carry the burden of a tax increase," Saftu General Secretary Zwelinzima Vavi said.

READ: COVID-19 vaccine funding will not be a problem, says Ramaphosa

Vavi recalled the VAT increase from 14 percent to 15 percent and said the VAT system is regressive and unfairly burdens the poor.

The union leader said government should be reviewing corporate taxes for sources of funding, tightening procurement procedures to prevent fraud, and finding money for stimulus.


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