STATEMENT | Reversal of VAT should not open the door for budget cuts

The Institute for Economic Justice (IEJ) welcomes the decision to reverse the ill-advised VAT
hike – a regressive tax that would have disproportionately harmed the poor, low-income workers,
and the struggling middle class. We caution that this reversal should not open the door for
budget cuts as appears to be the National Treasury’s preference.