Increasing VAT will not help those living below the poverty line

THE increase in VAT will have a significant impact on many people.

It is understood that indirect taxes fall most heavily on those who are unable to bear this extra burden. Any increase in VAT will affect the poor and middle class most. The poor cannot even afford food and the middle class barely earn enough to pay more taxes.

More pain is to come in the form of higher utility bills and fuel prices. Lower-income households are struggling to make ends meet and cannot afford any significant tax increases. The cost of everyday living is on the up, even though some groceries are Vat-exempt.

These Vat-exempt food items are inadequate to offset the drastic increase in other food prices.

Fuel prices have soared, driven by the collapse in the rand’s value and by international oil prices.

Most major retailers have passed transport cost increases to customers. Rising fuel costs, higher food prices and the increasing cost of basic commodities are beyond our control.

Inflation in South Africa should be taken seriously as so many people live either below or close to the poverty line, and these are the people who are most affected by rising costs.

Our society already suffers high unemployment and taxes on goods (VAT) will hit the poor the hardest.

How on earth does raising the VAT rate help anyone? I personally am getting less for more money. NILOFAR DAWOOD

Sherwood