VAT, fuel hikes ‘are problems’

The ANC-led tripartite alliance is mulling halting regular fuel price hikes and how to deal with the impact of the recent VAT increase for the benefit the poor.

This emerged after a meeting of the Alliance Political Council this week, a body comprising the national office bearers of the ANC, SA Communist Party, trade union federation Cosatu and the SA National Civic Organisation (Sanco).

Alliance members such as the SACP and Cosatu want the economic problems to be tackled before more damage is done. Top of their list are the regular fuel hikes and the impact of the VAT increase on consumers.

The SACP said it would like to see action to stop increases in fuel, and zero-rating, to be adjusted so the poor are affected negatively by the April VAT increase of 1%.

SACP first deputy general secretary Solly Mapaila, pictured above, said more had to be done to extricate people sinking in the economic quagmire. The SACP would discuss this and the need to reconfigure the alliance at its special central committee meeting on Friday and Saturday.

SACP second deputy general secretary Chris Mahlako said it would state its position when the Alliance Political Council resumes on Monday.

ANC deputy secretary-general Jessie Duarte said the ANC and its allies would strengthen the monitoring of the state, including how the government dealt with the fiscus, the delivery of quality and cost-effective healthcare services and the implementation of national health insurance.

This would be accompanied by a strengthening of the alliance so partners had more influence on decision-making at government and party levels.

A task team had been appointed to work on the modalities of this, she said.

Cosatu president Sdumo Dlamini said the federation supported the ANC’s December resolution on land expropriation without compensation. But Cosatu would not accept any land solution that did not guarantee tenure.

“Citizens should have the security of tenure, whether they fall under amakhosi or not.

“If the land issue does not address the security of tenure and the rights of women, it is a problem for us,” he added.

Mapaila said the party believed that township residents should also have access to land.