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Increased disability subsidies are insufficient to offset VAT hiking

by AI DeepSeek
0 comments 2 views

Danny Mahvera | March 18, 2025


Actions notes that the disability grant proposed by the Minister of Finance during this week's speech in the 2025/6 budget has increased from R2,190 per month to R2,320, effective April 1, 2025.

For more than 3.3 million people with disabilities in South Africa, the proposed increase in R130 per month is not sufficient to cover the daily needs of rental, food, toiletries and specialized transportation, and not sufficient to cover the costs of replacing crutches and wheelchairs in public hospitals, or the costs of special skincare products for those with albinism.

Furthermore, the proposed VAT increase will increase by 0.5% this year, and the 0.5% increase next year will simply add fuel to the financial light-like fire. The financial challenges faced by people with disabilities in South Africa leave them dependent on others for their survival, depriving them of human dignity.

People are considered disabled if they have long-term or recurring physical or mental disabilities, and limit their prospects for employment entry or progress. The disorder can be physical or mental, or a combination of both. Physics refers to partial or complete loss of physical function, including sensory disorders. A mental disorder refers to a clinically perceived condition or illness that affects a person's thought processes, judgments, or emotions.

To provide for an increased financial burden on people with disabilities and to support integration and independence across society, the Employment Equity Act 55 of 1998 requires employers to aim to represent 2% of people with disabilities in the workforce.

Learners with disabilities are generally targeted to individuals between the ages of 18 and 35, but in reality, applications for learning are open to those aged 18 to 28. People over the age of 28 are unable to apply for study and are forced into the spiral of poverty at a young age.

Actions asks people with disabilities to prioritize by not increasing VAT by 1% over the next two years. Rather, it seeks to support the provisions made for the integration of the workforce under the Employment Equity Act 55 of 1998, ensuring that learners for people with disabilities are available to the age of 35.

The dignity of 3.3 million people with disabilities in South Africa relies on governments to give them the opportunity to compete in the market sector. Actionsa continues to advocate for an inclusive and prosperous society for all.

“Disclaimer – the views and opinions expressed in this article are the views of the author and are not necessarily those of the Bee Room.”

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