The Star Late Edition

VAT rise will hurt poorer households

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FOR many people, the increase in VAT will have a significan­t impact.

It is understood that indirect taxes fall most heavily on those who are unable to bear this additional burden.

Any increase in VAT will fall heaviest on the poor and middle class. The poor cannot even afford food and the middle class barely earns enough to pay more VAT or tax.

More pain is to come with higher utility bills and fuel prices. Lower income households are struggling to make ends meet, and cannot afford increases.

The cost of daily living is on the up even though some groceries are VAT exempt. These are inadequate to offset the increase in other food prices.

Fuel prices have spiralled, driven by the collapse in the value of the Rand and by inter- national oil prices. Most major retailers have passed along transport cost increases to customers.

Rising fuel costs, higher food prices and increasing cost of basic commoditie­s are all beyond our control. Inflation in South Africa should be taken very seriously as so many people in our country live either below or very close to the poverty line, and these are the people that are most affected by ris- ing costs.

The South African society already suffers from high unemployme­nt and taxes on goods (VAT) hit the poor the hardest.

How on earth does raising the VAT help anyone?

I, personally, am getting less for more money. Nilofar Dawood Sherwood, Durban

How on earth does raising the VAT help anyone?

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