Protesters called on Finance Minister Enoch Godongwana to raise their taxes under the budget on Wednesday. Godongwana announced that VAT will increase, but the list of foods from VAT will expand. Photos: Ashraf Hendricks
Finance Minister Enoch Godongwana announced that they were growing on social grants during the budget speech on Wednesday. From April 1
- Nursing and disability grants are R2.315 per month, up to R130 or 5.9%;
- Child support grant is R560, R30 or 5.6% per month; and
- Protective Care Grant is R1,250 per month, r7 or 5.9%.
The existing inflation is 3.2%. The Minister envisages a higher inflationary growth growth to help the grant beneficiaries of the cushion beneficiary against the VAT increase in Wednesday.
The social relief of the R370 Grant (SRD) will remain the same and stay on the ground until March 2026.
Godongwana was repeated in previous statements from the SRD grant from the “being the basis for the application of a continuous support of unemployed people.” Godongwana, the grant will end until September 2025.
The Minister said that the VAT rate will increase from 15% to 15% to 15% on April 1 and 2026/27. According to him, the list of zero-rated goods (no VAT is paid) will be expanded to include canned vegetables, milk fluid mixtures and body flesh, poultry and other animals.
Godongwana said that personal income taxes will not be regulated to take into account the rise in labor. This means that the employees will increase in income tax, as it passes higher tax brackets. This VAT increase in 2025/26 and 2026/27 and R14.5 billion R14.5 billion R14.5 billion R14.5 billion R14.5 billion R14.5 billion will bring additional revenues to R14.5 billion, he said.
He said that the alternatives of unpopular growth in VAT are carefully considered. The increase in corporate or personal income tax rates will earn less income, and “it is not possible” by adding additional debt.
“The amount is just too big. The value of the debt would be unavailable,” said Godongwana.
Democratic alliance, this does not support the budget. Therefore, in the parliament, it is not clear whether there are enough votes to pass the budget in the coming weeks.
In addition to the education budget to store 11,000 teachers in the public sector, R19.1 billion was allocated.
Godongwana also announced the increase in the subsidy of early childhood development (ECD) paid to ECD centers from R1 to R1 to R1 per day. The budget also allows an additional 700,000 children to the age of four to take advantage of ECD subsidies.
“Health expenditures in 2024/25.25.28 in 2027/28 R329-billion R329-billion, including the fair supply of free initial health services, Godongwana said.
Increased health budgeting, “About 9,300 medical employees in our hospitals and clinics will be used to use 800 community service doctors and ensure that our pharmacies do not run out of drugs.”
Godongwana, America’s help financing in his speech. Money from the Emergency Plan (PEPFAR) for the AIDS assistance of the American president was violated by the organization that supports the health system chaotic cuts.
Although the South African government provides life-saving anti-metoviral HIV drugs, 90% are expected to have a wide range of pepfar cuts previously paid by Pepfar. About 17% of South Africa HIV response paid by Pepfar. Pepfar provides organizations and employees funded by Basic services Contact the test, care and support services.
Prior to the speech, Godongwana will help journalists to help the health department will help some shortcomings, but it was not reported.
About 100 people from various civil society organizations under the coalition People from the budget cut VAT increases and protested against the budget cut.
Earlier, people, civil society organizations, civil society organizations, coalition of trade unions and community groups, were collected near the spacelet of budgeting to protest against VAT growth and stiffness measures.
“Stop cutting young people” and “VAT increase” marks. Rich tax. Protect the poor, “protesters sang songs and called on social costs.
The joint statement said the coalition, the policy of stiffness, the freezing of the work, and the necessary services such as health, education and housing, he said. These cuts, they said, disproportionately affect the poor and working classes.
Synicolo Ngantweni, a student of equal education, “More than 500,000 students have struggled to find an apartment in the early year.”
After Godongwana’s speech, Brian Ashley, from the Center for Alternative Information and Development, said the government did not intend to address the country’s social crisis. “Despite other measures to increase the government’s revenues, they carry the burden of VAT, the burden of a VAT, and again the electricity of the economic crisis.” This country is not done for extremely rich taxes, “he said.
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