The Commission is however deeply concerned with the 1% increase in Value Added Tax (VAT) to 15%. The announcement on the 21st February 2018, by the Finance Minister, is the first such increase in a constitutionally democratic South Africa, the first in 25 years. However the Commission is aware that this increase in VAT, a tax attached to the majority of goods and services, impacts on the poor the most. Further, the SAHRC is also concerned with the increase in the fuel price through the introduction of a 52 cents per litre fuel levy. This increase in fuel price particularly impacts on the poor as it affects the price of public transport and the price of goods as the vast majority of goods sold to the public are transported on the road.

Such increases, impact on the poor by limiting their enjoyment of socio-economic rights such as the right to food, water, education and price increases, aforementioned, limit the enjoyment of social security safety nets, despite increases.

The Commission is of the view that a significant portion of the economic challenges South Africa is experiencing at the moment, could have been averted if government had demonstrated better management of the economy and demonstrated an intolerance toward corruption, inefficiency and maladministration. Public and private sector corruption, according to the Auditor General (a fellow Chapter 9 Institution), costs the nation billions on an annual basis. The Commission is deeply disappointed by the fact that these funds have been lost, rather than used in the realisation of rights and services.

The Commission notes and commends government’s current efforts to address looting and corruption.

Ends
Issued by the South African Human Rights Commission, Gail Smith, Spokesperson, This email address is being protected from spambots. You need JavaScript enabled to view it. 060 988 3792