Results 1 to 3 of 3

Thread: Push for Govt to increase VAT

  1. #1

    Exclamation Push for Govt to increase VAT

    Cape Town - Raising South Africa's 14% value-added tax (VAT) rate would be a more efficient way of boosting revenue than increasing direct taxes, but would also hurt the poor, a tax advisory committee to the Government said on Wednesday.

    By contrast, hiking personal or corporate tax rates would cause less inflationary pressure in Africa’s most advanced economy, although there would be a negative impact on real gross domestic product and employment, said the Davis Tax Committee.

    "It is thus clear that from a purely macroeconomic standpoint, an increase in VAT is less distortionary than an increase in direct taxes," the committee said.

    In its first interim report on VAT released for public comment, it said the Government may have to consider compensatory mechanisms, such as increasing social grants, to help shield the poor if the VAT rate was raised.

    The committee, headed by Judge Dennis Davis, strongly recommended that no further zero-rated food categories be considered, noting there was clear evidence that zero rating certain foods - such as fruit and milk - benefited richer households more.

    The review was set up in 2013 by former Finance Minister Pravin Gordhan to assess the country's tax policy framework and its role in supporting growth, employment and fiscal sustainability.

    Source: Fin24

  2. #2

    Default

    noting there was clear evidence that zero rating certain foods - such as fruit and milk - benefited richer households more.
    Uh Wat? That makes no sense at all
    #hashtag #anotherhashtag #bonushashtag

  3. #3
    Assassin of Accountants Ike_009's Avatar
    Join Date
    Jun 2012
    Location
    Pretoria
    Posts
    7,799

    Default

    Personally I don't mind this. I think we really need to distribute the tax income base a lot more than currently. Income tax is nearly 35% of SARS's income and of this only around 5 million people are paying tax. So a 10% of the country is supporting so much of the tax base is a little scary to me. So personally I would prefer to see closer to 25% of people paying income tax or else a higher VAT Rate rate and some relieve for the 10% paying income tax.
    My ignore list: n/a

Similar Threads

  1. Will the new WoW expansion push your PC?
    By qornea in forum Gaming News Articles
    Replies: 5
    Last Post: 17-04-2014, 08:44 AM
  2. Replies: 0
    Last Post: 18-03-2013, 12:20 PM
  3. Obama signs bill averting US govt. default
    By James in forum Off Topic
    Replies: 0
    Last Post: 05-02-2013, 10:10 AM
  4. US govt. seeks to track criminals through consoles
    By James in forum Gaming News Articles
    Replies: 0
    Last Post: 16-04-2012, 10:10 AM
  5. North Korean govt funded my MMO hackers
    By James in forum Gaming News Articles
    Replies: 7
    Last Post: 10-08-2011, 05:21 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •