News 21.2.2018 10:37 pm

ANC welcomes budget for ‘the people’

ANC welcomes budget for ‘the people’

It says the increase in VAT, which has drawn the ire of some opposition parties and unions, would be offset by instruments in place to protect the poor.

The ANC welcomed the 2018 budget, tabled in parliament yesterday, calling it “people-centred”.

“The budget speaks to challenges confronting South Africa in a difficult global environment, but most importantly recognises and embraces the opportunities offered by the sense of optimism and renewed investor confidence in South Africa,” the ANC said.

It noted the increase in value-added tax, which drew the ire of some opposition parties and unions, saying there were enough instruments in place to protect the poor.

“The exemption of basic necessities, including zero-rated food items and other necessities, shield the poorest of the poor from the potential regressive nature of the tax and introduce rather a more progressive and redistributive manner of raising revenue,” the party said.

“We further welcome the above-inflation increases in social grants, which once again affirms our commitment to a comprehensive social security net for the most vulnerable in our society.”

Social grants crisis will bite ANC – analyst

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