Should VAT be scrapped?

Should VAT be scrapped?

  • Yes

    Votes: 149 50.2%

  • No

    Votes: 118 39.7%

  • Other

    Votes: 30 10.1%
  • Total voters
    297

I watched this video a couple of a weeks ago and I was shocked to see how cheap groceries are in the UK, seems much cheaper than here which makes me wonder why there are so many UK retirees living in SA.

From I what I gather, UK doesn't charge any VAT on non prepared foods.

A question I have if SA have something similar on the entire value chain how much cheaper would groceries be?
 
A few people in this country pay most tax. Scrapping VAT will make that worse. Honestly at this point I would prefer VAT goes up, and income tax goes down but that would pressure the ANC voters to do something about the ANC.
 
Reducing or scrapping personal income tax?
Ja, asseblief.
Less money that the guttermint can waste.
Also, personal income tax makes up for only a fraction of the government's income.
It will be huge relief for some of us, not having to pay PIT, and push that money towards paying off the house loan, etc.
I, for one, will be then able to afford a modest sized 2 bedroom flat/townhouse, and being able to start my pension...
 
Scrap VAT on certain food items - Yes

The stores will increase the normal price (if without VAT) so that is the same as currently with VAT.
 
VAT plays an important role in the balance of our economy. You can't scrap it completely. I would like to see a scrapping of VAT on essential food items, so that low income families have a better chance at survival.
 
NO - it should be increased to 30-40% and INCOME tax should be abolished.
The VAT staff just need to change number - no extra work.
The income tax staff can all be retrenched and the buildings used for homes.
Essentials can be low rated VAT and luxury items rated higher (as with VAT in most countries).
This would also stimulate more workers to go on the cards as they have to contribute anyway when they buy anything.
 
I have an alternative proposal. Scrap VAT exemption for all items, and work out how much more money is collected and pay that amount distributed evenly across the population monthly. The VAT exemptions have some ridiculous implications - a rich person spending R20,000 a month on a raw fruit and nut diet won't pay VAT on it, but a poor person that wants to eat chicken needs to pay VAT. Giving a flat rebate to everybody is awesome because then you don't have to micromanage what is VAT exempt or not, and people have freedom to choose. It is also easier to calibrate. Obviously everybody will need bank accounts or need the ability to withdraw money using their ID cards but we already have SASSA grants and the pain around that so might as well expand and combine it.

stefan9 said:
The rich buy more items then the poor. They will obviously contribute the most.
Click to expand...

The poor spend 100% of their income on survival. The rich save and invest. E.g. I might spend 50% of my salary per month on VAT related expenses, and the rest goes towards bond (which builds capital), or investments. That is why I am against people talking about "only x people pay tax" -- because it is not true. Poor people in the country pay a lot of tax via VAT and not PIT. The very rich pay relatively the least, middle class and poor people pay proportionally the most.

If you are rich enough not live from a salary but rather capital gains your marginal rate is 46% * 25% = 11.5%. Then you might pay VAT on the part of the money that you spend in South Africa e.g. travelling overseas means you avoid paying SA VAT. Investing attracts no VAT, and buying assets like building new houses the VAT tends to be included in value which you recoup when you sell.
 
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