Budget

EG Hillyard sent a message to John Henry Steenhuisen.

To
John Henry Steenhuisen
From
EG Hillyard
Subject
Budget
Date
April 29, 2025, 9:15 a.m.
Hello John, I write this to you as the leader of the DA. Firstly, congratulations on holding firm on the VAT issue. I feel that the proposed 0.5% VAT increase was in fact minimal - a 50c increase on a purchase of R115 and that it was in reality more another tax on the "rich" as most food items are zero rated. Slapping more and more taxes on a diminishing tax base, to prop up and inefficient, wasteful, and incompetent government was not the way to go.

It is good that you have succeeded here, but the DA also needs to propose alternatives to balance the budget. Obviously slashing government expenses is vital, but the ANC are never going to reduce minister numbers as this would be political suicide for them. They have to not be the biggest minority party for this to happen, hopefully in 2026 and/or 2028.

Perhaps the following could be considered: Increase VAT by 1% per year for the next 3 years, while at the same time reducing personal income tax to match. Taxpayers will have more disposable income, that when spent, will generate even more VAT. A 1% increase in VAT will result in an increase of about a 6.6% increase in VAT collections each year for the next 3 years, a huge amount of money. The SA economic downward spiral needs to be reversed

The DA needs to reach and inform more of the electorate as to what is really happening in our country. You need more like Christopher Pappas to move amongst the uninformed and unaware. The cult and splinter parties need somehow to brought into the DA. Just imagine the DA with 32% of the vote and the ANC with 28%

Regards

Gavin Hillyard
Somerset West

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