Ntshavheni Says DA’s Opposition to VAT Increase is Unfounded

In a recent statement, Minister of Small Business Development, Khumbudzo Ntshavheni, addressed the opposition of the Democratic Alliance (DA) to the proposed increase in Value Added Tax (VAT). According to Ntshavheni, the DA’s concerns do not stem from genuine worries about the impact of the VAT increase on South African citizens, but rather from political posturing.

The proposed increase in VAT from 14% to 15% has been met with mixed reactions from various political parties and citizens. While some have expressed concern over the potential burden on low-income households, others have argued that it is a necessary step to address the country’s economic challenges. However, the DA’s opposition to the VAT increase has been particularly vocal, with the party claiming that it will have a detrimental effect on the poor.

But Ntshavheni has dismissed these claims, stating that the DA’s opposition is not based on genuine concerns for the welfare of South Africans. “The DA’s opposition to the VAT increase is nothing but a political ploy to gain support from the public,” she said. “Their arguments are not rooted in facts and are simply an attempt to score political points.”

The Minister pointed out that the VAT increase will not affect basic food items such as maize meal, brown bread, and rice, which are exempt from VAT. She also highlighted that the increase will not impact the zero-rated items such as paraffin, illuminating paraffin, and sanitary products. These items are essential for low-income households and will not be subject to the VAT increase.

Ntshavheni also emphasized that the VAT increase is a necessary measure to address the country’s economic challenges. “We are facing a budget deficit of R50 billion and the VAT increase will generate much-needed revenue to fund essential services such as education, healthcare, and social grants,” she explained. “It is a responsible decision taken by the government to ensure the sustainability of our economy.”

The Minister also addressed the DA’s claims that the VAT increase will have a negative impact on small businesses. She stated that the government has put measures in place to support small businesses, such as the Small Business and Innovation Fund, which provides financial assistance to entrepreneurs. “The VAT increase will not have a significant impact on small businesses as they can claim back the VAT paid on their business expenses,” Ntshavheni added.

Furthermore, Ntshavheni highlighted that the government is committed to creating an enabling environment for small businesses to thrive. “We have implemented various policies and initiatives to support small businesses, such as the reduction of red tape and the establishment of the Small Business Development Agency,” she said. “These efforts will continue to ensure that small businesses are not negatively affected by the VAT increase.”

In conclusion, Ntshavheni urged the public not to be swayed by the DA’s political posturing and to look at the facts before forming an opinion on the VAT increase. She emphasized that the government’s decision to increase VAT was not taken lightly and is necessary for the country’s economic stability. “We are committed to ensuring that the burden of the VAT increase is not felt by the most vulnerable in our society,” she said. “Let us work together to build a stronger and more prosperous South Africa for all.”

In light of Ntshavheni’s statement, it is clear that the DA’s opposition to the VAT increase is unfounded and based on political motives rather than genuine concerns for the welfare of South Africans. The government’s efforts to support small businesses and protect the most vulnerable in society should be commended, and the public should not be swayed by political rhetoric. Let us trust in the government’s decision and work together towards a brighter future for our country.