UASA is most concerned about the expected sharp increase in the fuel price of about R1,35/litre, according to economists.
This, as well as a higher income tax burden, increases in customs and excise duties as announced in the budget by finance minister Tito Mboweni in his budget speech in February, higher electricity tariffs, etc. will increase the financial pressure on the already struggling South African worker even further.
Workers are under financial pressure lose their buying power as consumers, resulting in a struggling, low-growth economy and minimal job creation. In addition, it will push up consumer price inflation, which will in turn increase pressure on the Reserve Bank to hike interest rates. South Africa and its workers, already carrying too large financial burdens, cannot afford further interest rate increases.
The good news is that international oil prices may decrease in April as world economic growth is slowing, which should contribute to lower oil prices. If so, this will bring welcome financial relief to workers.
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