Expect a 2% VAT increase

dontcryforme said:
Yes and no, they usually have it prepared and make the links visible to the public the second the FM starts with the budget speech - they never had to worry about losing the vote on the budget before, now they do. Now things don't work like it used to.
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Well here is the problem. SARS is essentially reporting on something that hasn't been approved yet. It is a bad practice that should never have been allowed and SARS should also not have had privileged info to begin with. But we are in a government now where no party rules so nothing can be assumed any more. Seems nobody has gotten that memo yet.

hj007 said:
So I don't get what's actually happening here, either:
1. The DA knew about the VAT increase before and were unhappy the ANC was pushing it through regardless, ie the GNU is dysfunctional.
2. The DA didn't know and the budget was going to be passed without discussing internally, ie the GNU is dysfunctional.

I can't really see how this is a good thing? Or are we saying that it's a ploy to only push 1% VAT increase? either way the country seems bankrupt... what happens if they don't pass a budget by 1 April?
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Then we are in a state like America has been multiple times where we may not have a budget to spend.

The budget is only passed in a vote and not in the speech. What likely happened is they were deliberating up till now with no result.

Scooby_Doo said:
Yeah, I am speculating, but if its not VAT it has to come from somewhere and we all know how much SA hates the "rich".
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There are multiple avenues. Cut spending on government departments and sectors. Reduce fruitless expenditure and corruption. Grow the economy. We all know the ANC would never want to try any of those though. They'll rather borrow the money somewhere and delay the problem till next year.
 
deweyzeph said:
A lot of financial software developers will be holding their breath. Last time the VAT rate changed it was a complete **** show. You'd be surprised how many financial systems hardcode the VAT rate in their systems.
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That was last time. The reason it took them months to rectify was that they had to change it to a variable. They couldn't just do a search and replace and the 14% also relied on some assumptions that shouldn't have been made.

Now it would be a matter of changing a variable for a date range.
 
Swa said:
That was last time. The reason it took them months to rectify was that they had to change it to a variable. They couldn't just do a search and replace and the 14% also relied on some assumptions that shouldn't have been made.

Now it would be a matter of changing a variable for a date range.
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Well it was 14% for a long long long time
 
VAT is just taxing people a second time for spending money that was already taxed when they earned it. You should be taxing people for hoarding money in assets instead.

VAT is one of the most difficult to administer and the most arduous taxes on businesses from an admin perspective. South African businesses spend billions each year calculating and filing their VAT returns. VAT should be eliminated entirely.

It is much better to tax wealth that is not active in the economy. Like properties after the second one owned by the same person or entity.
 
Sapphiron said:
VAT is just taxing people a second time for spending money that was already taxed when they earned it. You should be taxing people for hoarding money in assets instead.

VAT is one of the most difficult to administer and the most arduous taxes on businesses from an admin perspective. South African businesses spend billions each year calculating and filing their VAT returns. VAT should be eliminated entirely.

It is much better to tax wealth that is not active in the economy. Like properties after the second one owned by the same person or entity.
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Say someone doesn't earn enough for income tax, should they then pay VAT? If someone is foreign, should we ask for their income tax from the other country?

Not sure how VAT is one of the most difficult to administer, it's similar to most taxes, plus only applies once revenue is R1m+, so you should be able to have a part time accountant at that point if can't figure it out yourself. I would say only places like supermarkets would have an "issue" there, and at R1m+ revenue, please have a digital POS system.
 
Vat will probably increase to around 25-30% over the next decade. Easiest way to collect money although poor suffer the most
 
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