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Shock April retail sales crash after VAT increase

Joined
Mar 6, 2004
Messages
23,914
#1
April’s increase in VAT and fuel prices knocked retail sales growth down to a ninth of the 4.5% expected by economists.

Statistics SA reported on Wednesday that annual retail sales growth decelerated to 0.5%, sharply down from March’s originally reported 4.8%. Stats SA revised the March figure down to 4.6%.

"Today’s figures are disappointing, particularly given that consumer spending accounts for just over 60% of GDP," Nedbank's economic unit said in an e-mail.

In current prices, Stats SA reported April’s total retail sales came to R80bn, down from R83bn in March. Stats SA uses constant prices set to 2015 to strip inflation out of its retail growth figures.

General retailers, which account for 41% of total retail sales, suffered a 1% annual decline to R29bn. Clothing retailers, the second largest category contributing 18% of the total, suffered a 0.5% sales decline to R13bn.

Pharmacies, which contribute 8% of the total, grew sales 6.2% to R6bn. Furniture stores did best, growing annual sales 11% to R3.3bn, or 5% of the total.

Said FNB chief economist Mamello Matikinca, "The April print is an important one, not only because it represents the first month of the second quarter, but because it will be the first month to reflect the impact of VAT and fuel price increases on consumers’ pockets."
https://www.businesslive.co.za/bd/e...-april-retail-sales-crash-after-vat-increase/
 

Lupus

Honorary Master
Joined
Apr 25, 2006
Messages
11,284
#2
See here's the thing, government increases VAT by 1% retailers then go increase everything by 6%? Then you've got the massive petrol shock and the cost of power and water, where do you expect money to come from? Those magic bushes you get as soon as you have a piece of land?
 

thechamp

Honorary Master
Joined
Feb 26, 2011
Messages
13,458
#3
See here's the thing, government increases VAT by 1% retailers then go increase everything by 6%? Then you've got the massive petrol shock and the cost of power and water, where do you expect money to come from? Those magic bushes you get as soon as you have a piece of land?
That ^^.
 

TelkomUseless

Executive Member
Joined
Mar 13, 2006
Messages
6,700
#5
Not at all surprised.

Increase vat, tax the crap out of petrol (and then higher international fuel prices).

But government only knows how to increase taxes.
 

rietrot

Executive Member
Joined
Aug 26, 2016
Messages
9,317
#7
Today’s figures are disappointing, particularly given that consumer spending accounts for just over 60% of GDP,"
That's way more worrying than bad growth and completely unsustainable.
 

Ho3n3r

Honorary Master
Joined
Apr 5, 2012
Messages
16,567
#9
Not at all surprised.

Increase vat, tax the crap out of petrol (and then higher international fuel prices).

But government only knows how to increase taxes.
Yup. When was the last time something was decreased for the benefit of the public? Can only remember interest rates going down slightly, everything else is increased to milk the last little bit out of us.
 

rietrot

Executive Member
Joined
Aug 26, 2016
Messages
9,317
#11
Bit above the world average, but not particularly unusual. It may well be unsustainable, but it's a global problem.
I would feel better if we don't win the global race to the bottom. And I don't think our reserve bank can buy bond from business to keep everything afloat like the US, ECB or Japan. We just need to start producing more than we consume.
 
Joined
Nov 14, 2007
Messages
3,812
#12
Where has ALL the money gone ...?????

The STATE is the only actor able to siphon money out of the macro-economy at such a rate

Where has ALL the Tax LOOT gone ?
WASTED EVERY DIME !


ALL that high taxation does is enable BIG government AND corruption

Tax in the "pure" form is mean to be justified because

1.) Enables the building and maintenance of infrastructure = social-capital

2.) Shift some of the wealth from the rich to the poor = upliftment programs / poor relief

Unfortunately in SA Tax;

Makes the rich richer
Keeps the poor dependent on the State !
and
Keeps supplying hand-out-packages to badly run state institutions with corrupt managers
and
Allows them to remain "in business" just long enough to bankrupt the WHOLE COUNTRY !
 

Slootvreter

Honorary Master
Joined
Aug 7, 2008
Messages
26,566
#15
The STATE is the only actor able to siphon money out of the macro-economy at such a rate

Where has ALL the Tax LOOT gone ?
WASTED EVERY DIME !


ALL that high taxation does is enable BIG government AND corruption

Tax in the "pure" form is mean to be justified because

1.) Enables the building and maintenance of infrastructure = social-capital

2.) Shift some of the wealth from the rich to the poor = upliftment programs / poor relief

Unfortunately in SA Tax;

Makes the rich richer
Keeps the poor dependent on the State !
and
Keeps supplying hand-out-packages to badly run state institutions with corrupt managers
and
Allows them to remain "in business" just long enough to bankrupt the WHOLE COUNTRY !
WTF, do you think this increase is not exploited by retailers? :crylaugh: Jirre
 
Joined
Nov 14, 2007
Messages
3,812
#17
Rich People ...

Also he doesn't realise that most of the rich in SA have people on retainer to ensure they pay less tax than us who work for bosses.
WHEN was the last time you looked at -- RICH people in SOUTH AFRICA ?
Why not do yourself a favour and see WHAT THAT demographic looks like these days ......
 
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