In a hard-hitting panel discussion on VAT, inequality, and South Africa’s fiscal direction, Annaline van der Poel, Chief Operating Officer at Debt Rescue, offered a grounded perspective from the frontlines of household debt.
She was joined by Professor Keith Engel, CEO of the South African Institute of Taxation and Wits University academic, and Yeshiel Panchia journalist at the Daily Maverick. The discussion, hosted by CII Radio tackled the broader economic implications of the proposed VAT increase and how it intersects with political instability and structural inequality.
Representing the voice of over-indebted South Africans, Van der Poel argued that “Essentials, living expenses, electricity, transport, school supplies — everything is becoming more expensive,” she said.
She revealed that consumers are now buying food on credit, not because they’re overspending, but simply trying to survive. “Everyone keeps telling consumers to tighten their belts, but to what point?” she asked.
Van der Poel further explained that the ongoing political instability and inconsistent government messaging are creating an environment of fear and economic anxiety.
“Consumers are feeling the chaos. If government is not stable and is not speaking from one voice, ultimately… the economic environment becomes unpredictable… political uncertainty does contribute directly to the economic anxiety and ultimately, the real net effect that consumers are feeling.”
She warned that VAT increases, while efficient on paper, disregard the harsh daily decisions ordinary South Africans are already making.
“There’s this assumption that by tightening the budget through things like VAT increases, it’s considered good fiscal policy, but not looking at the context of what the consumers on the ground are actually going through. Consumers are not spending because they can’t afford to. They’re not saving because they don’t have money to save.” she explained.
Listen to this honest and urgent conversation.
