Ramaphosa

President Cyril Ramaphosa during the Launch of Public Service Month at Maponya Mall in Soweto. Gauteng Province. South Afirca. 31/08/2014. Photo: Siyabulela Duda / GovernmentZA’

Ramaphosa promises new plan to help South Africans with fuel and VAT increases

There might be a solution soon!

Ramaphosa

President Cyril Ramaphosa during the Launch of Public Service Month at Maponya Mall in Soweto. Gauteng Province. South Afirca. 31/08/2014. Photo: Siyabulela Duda / GovernmentZA’

With the VAT increase and a continuous rise in the fuel price, President Cyril Ramaphosa has come under fire. To make matters worse, those flames seem to be getting bigger and growing in numbers.

Cyril Ramaphosa and the never-ending fuel price

On Friday, Ramaphosa announced that government will soon be announcing a package to help ease the burden of constant fuel price increases and the VAT increase. South Africans can expect the package to be made public in the next two weeks.

The President was speaking to business and government leaders in Pretoria ahead of the upcoming BRICS summit.

Ramaphosa explained that he has picked a panel of various stakeholders from the economic cluster to create the package.

With South Africans crying out from the effects of the fuel hikes and rapidly growing costs of living, Ramaphosa explained that the depreciation of the rand had played a key role.

“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 has also called on the transport sector and those in retail to hold back on price increases while the new plan is under construction.

In February, then Finance Minister Malusi Gigaba announced the first increase in VAT in 24 years. Since April, there have been, regular increases in the petrol price. With increases in the fuel and Road Accident Fund Levies also being out in place, many are focusing the majority of the blame on the post-Zuma ANC government.

According to Finance Minister Nhlanhla Nene, the new panel held its first meeting on Thursday night and will meet again on Friday.

“Its mandate had been expanded to look into the effects of the fuel price. I think everyone realises that the people are suffering, therefore there is a need to address the matter with urgency,” FIN24 quotes him as saying.

Currently, another petrol price hike looks likely to come in August.