The worst problems since 1994 are facing South Africa, and especially workers, and therefore Cosatu will reject any attempts by Finance Minister Tito Mboweni to increase VAT in his budget in particular.
That’s what the trade union and ANC alliance partner said on Monday.
Cosatu spokesperson Sizwe Pamla added that Mboweni would also have to stop shifting South Africa’s tax burden more and more to the working and middle-class families.
“The loopholes in the tax regime must be closed and the tax structure revised to ensure that the rich pay their fair share.
“Further intervention with the South African Revenue Service is needed to ensure this happens through, for example, a massive expansion of its customs enforcement capacity.”
According to Cosatu, Mboweni must also inform South Africans of what exactly the government has done, and will continue to do to recover the 10% loss by the fiscal each year due to plunder and wasted expenditure.
Meanwhile, Mzamo Buthelezi, IFP finance spokesman, said his party was “cautiously optimistic” that Mboweni would deliver a budget that would provide security to all South Africans.