Skip to main content

VAT, fuel price hikes: Ramaphosa gives ministers 2 weeks for plan to ease consumer pain

| Economic factors

Government will in two weeks’ time announce a package of economic measures to cushion the public from the crippling effects of high fuel price hikes and the VAT increase, President Cyril Ramaphosa said on 6th July 2018.

Addressing business and government leaders in Pretoria ahead of the BRICS Summit later this month, Ramaphosa said a panel made up of various stakeholders from the economic cluster has been tasked with drafting the package.

He said government had acknowledged that the people were reeling from the effects of fuel price increases which he said was among other factors imposed by the depreciation of the rand.

“We will be announcing a package of measures to ease the burden of the price increase, this would include the finalisation of the VAT exempt products.

“I will ask the ministers in the economic cluster to finalise the package in a matter of two weeks,” he said.

Ramaphosa urged retailers and the transport sector to hold off price increases while the plan was being drafted. The poor have been impacted severely by the rising cost of living.

The price of fuel has been increasing steadily since April, following the increase in the fuel and RAF levies. The VAT hike from 14% to 15%, which came into effect in the same month, has pushed the cost of food and other items significantly higher.

Former minister of finance Malusi Gigaba announce the VAT increase during the budget speech in February. The increase was the first in over 24 years.

The Minister of Finance Nhlanhla Nene said the panel tasked with putting together the package met last night and is due to meet again today.

“Its mandate had been expanded to look into the effects of the fuel price,” he said.

“I think everyone realises that the people are suffering, therefore there is a need to address the matter with urgency.”




Pin It

Related Articles

Petrol price earmarked for another hike in May

By: Siphelele Dludla – IOL Business Report THE Automobile Association (AA) has warned of another petrol price hike in May that will push the cost of living even higher for financially-constrained consumers, as inflation also remained sticky above...

Petrol price hike on Wednesday, but some diesel...

By: News24   Petrol will be hiked on Wednesday (03/04/2024), while wholesale diesel prices are mixed.  

SPAR shares tips on how to lighten the financia...

For many, Easter is a time of celebration and tradition, marked by gatherings with loved ones and delicious meals. However, the financial strain brought on by the increased cost of living may require families to adjust their usual celebrations, wh...

Reprieve for consumers at till as prices tick m...

By: Given Majola - IOL Business Consumers got a reprieve at the till this month as the cost of the average household food basket showed a marginal increase.

SA consumers feel the big squeeze: 99% have cha...

According to NIQ, 44% of South African consumers feel they are in a worse financial position this year compared to a year ago.