Durban - Almost 40 000 people have signed a petition to get parliament to scrap the VAT increase.
The petition on advocacy organisation’s Amandla.mobi’s website, rejects Finance Minister Malusi Gigaba’s announcement of a 1% VAT increase.
The petition is endorsed by 36 civil society organisations which believe there are other ways of raising revenue rather than increasing VAT which will “hit the poorest the hardest.”
It suggests increasing personal income tax on high income earners, corporate tax and implementing a carbon tax among others.
“All of this should make it possible to relieve the burden on the poor, and get rid of regressive tax policies in opposition to mainstream economists who are calling for VAT increases."
Regarding claims that this increase will not impact the poor as there are 19 basic food items that are zero-rated, the petition states that there are other necessary items that would be subjected to the VAT increase.
Read: VAT increase was unavoidable
“People cannot survive on only 19 types of food and also need school uniforms, sanitary pads, toiletries and many other things that are not VAT exempt. What is more, government could instead redouble efforts to crack down on some ultra rich South Africans and companies who are avoiding paying tax. We all have to pay our fair share.”
The DA has also started a petition, which has garnered almost 30 000 signatures.
The increase of VAT from 14% to 15%, is expected to add about R22.9 billion to the fiscus.
Read more: DA plans march against VAT increase
Thami Bolani, chairman of the National Consumer Forum (NCF) said the increase was not fair on consumers.
"We are where we are because of a government which is bloated, poor service delivery, corruption, and money lost to state capture. We are where we are simply because the finances of the country are not properly managed,” he said.
While Bolani does not believe petitioning and public comments would make parliament vote against the increase, he said active citizenry was paramount.
“What we need is for all South Africans to be more active so that these things don’t continue unchecked,” said Bolani.
Willie Coetzee, a tax law specialist and partner at law firm, Shepstone and Wylie, also said it was highly unlikely the the decision would be reversed.
But, explaining the process, he said legislation allows for parliament to vote to set aside the decision.
A vote is expected to take place next week.
Coetzee said there was a huge financial shortfall that needed to be addressed.
‘It’s unfortunate that it does affect the poor. But I don’t think we have any other choice with the country in such a poor financial state,” he said.
"Part of the shock of the increase is the 25 years without one. But without it, government might not be able to pay social grants, so it was “the lesser evil,” said Coetzee.