Mitigating the impact of the increase in the VAT rate on poor and low-income households

24 June 2018

As civil society organisations (CSOs) we are concerned by the tax proposals made by the 2018 National Budget (‘the Budget’) and contained within the Rates and Monetary Amounts and Amendment of Revenue Laws Bill 2018 (‘the Bill’), in particular its regressive tax measures, most notably the increase to VAT, and the harsh spending cuts that will result from the proposed revenue levels.

As raised in our two submissions to Parliament on the Budget, we are concerned about the negative effects these measures will have on poor and low-income households. Such choices were not inevitable and, as previously demonstrated, alternative progressive taxation measures, which would reduce inequality and support growth, are available to the Executive.

2018 06 05 Submission by Budget Justice Coalition to VAT Expert Panel