Finance Minister Enoch Godongwana faces backlash over linking SRD grants with proposed VAT hike

Advocacy group Black Sash has accused Finance Minister Enoch Godongwana of "using" the SRD grant as leverage to gain acceptance for a VAT hike.

This follows Godongwana's statement that there would be no need for a VAT increase if the COVID-19 Social Relief of Distress (SRD) grants were reduced.

"Millions of unemployed South Africans rely on the SRD grant for survival. If you allowed me to cut the SRD, I wouldn’t increase anything. I’m faced with increased expenditures that are not in the budget,” Godongwana said.

Godongwana's proposed 2% Value Added Tax (VAT) increase was rejected by members of the Government of National Unity (GNU) a week ago, leading to the postponement of the budget speech.

The proposal also faced widespread criticism from opposition parties. Jacob Zuma's MK Party has threatened to bring the country to a standstill if the minister proceeds with the VAT hike.

Black Sash Executive Director Rachel Rukasa pointed out that millions depend on the SRD grant and accused the minister of pitting poor people against each other.

"To say the SRD grant is the reason he is in trouble now is shocking. Honestly, as a society, we should be wary of the minister's language," Rukasa said to broadcaster Newzroom Afrika

"I need this, I need this – the minister does not live in a dictatorship. He is a democratically elected official who must consult not only ANC leadership, but the broader coalition about how these decisions are made.

"His personal dislike of the SRD grant should not be the reason behind such actions. To pit poor people against each other – it’s either the grant that gives dignity or higher bread prices. This is dangerous, and he should be called out for it."

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