VAT At 16%

Garson007 said:
VAT is just a tax on the poor. Possibly the worst tax you could increase. Drop all forms of taxes and tolling and whatever. Up the income tax. Only tax you need.
Click to expand...

Lol, you're a real joker aren't you? Instead of trying to uplift the poor, let's just play Robin Hood and bring everyone down to the lowest common denominator. It makes for a great story, especially in Africa...
 
Yes let's increase the VAT rate as there isn't enough money to steal from other sources. :rolleyes:
 
eehellfire said:
Only if you remove tax exclusions.
Why should those who earn a living subsidise completely, and I mean completely, those who don't?
Click to expand...
It's easy. When you are born you don't know which bracket you are going to fall into. You could very well be the one in the subsidised completely camp. The problem isn't the rich subsidising the poor but the wrong set of people being subsidised in the wrong ways.

An income tax is the best and fairest tax but you need the correct government to make it work. No wasting and no corruption and you need good and clear policies. Any welfare should go to people of the country that really need it. There also shouldn't be any nonsense like support grands for children being a source of income rather than supporting the children.
 
cANCer needs more gravy to waste.
Fking Rape us you bunch of criminals.
No electricity
Water problems
Potholes
Crime
Corruption
Bad law enforcement
Poor judiciary
Bad service delivery
Poor border control
Telkom
SAPOS
SAA
Etc etc

You are just pizzing the current tax money away and you want more.
I wouldn't mind paying more tax to a honest government but you b@stids can go fvck yourselves with a cactus.
 
*Shakes head*

They could really at least try to cut costs / corruption / Nkandlas a bit instead.
 
An increase in the standard value*added tax (VAT) rate of 14% by one or two percentage points
could reduce the pressure on the fiscus and would bring South Africa more in line with a number of international
jurisdictions around the world.
Click to expand...

What do Joe citizen in those international jurisdictions get for their VAT and taxes compared to us poor folk in South Africa?
Bl@@dy idiots!
 
There are a lot of clever and experienced people in the commission who are coming up with ideas to simplify and fix our rather outdated tax code.

Upping the VAT rate would be part of a bigger restructuring and needs to be seen in that context.
 
Last edited:
saturnz said:
There are a lot of clever people and experienced in the commission who are coming up with ideas to simplify and fix our rather outdated tax code.

Upping the VAT rate would be part of a bigger restructuring and needs to be seen in that context.
Click to expand...
Let them do the restructuring first and then we'll see.
 
Swa said:
Let them do the restructuring first and then we'll see.
Click to expand...

I think early last year the commission released an interim report on its proposals to make the tax code easier for small business, so yes there will be some giving and there will be some taking, thats how things work.
 
alloytoo said:
... the headache comes when dealing with credit notes relating to the old rate.
.
Click to expand...

Not mention that when someone wants to reprint a copy invoice on the old rate, if its not stored properly, the copy invoice is going to reprint with the "current" VAT rate.
 
saturnz said:
I think early last year the commission released an interim report on its proposals to make the tax code easier for small business, so yes there will be some giving and there will be some taking, thats how things work.
Click to expand...
Except that increased VAT will be directed towards people and not businesses. It seems like the usual taking a lot more for the few "conveniences" given. If you draw a graph over the years you'll see that there has been a net taking trend. What needs to happen is for all of the extra taxes that have been introduced over the years to be done away with so that only income tax remains.

There are also some inaccuracies in what is said in the article. While the VAT rate may be lagging behind comparative jurisdictions that is only when comparing it to jurisdictions that actually charge VAT or sales tax.
 
Swa said:
Except that increased VAT will be directed towards people and not businesses. It seems like the usual taking a lot more for the few "conveniences" given. If you draw a graph over the years you'll see that there has been a net taking trend. What needs to happen is for all of the extra taxes that have been introduced over the years to be done away with so that only income tax remains.

There are also some inaccuracies in what is said in the article. While the VAT rate may be lagging behind comparative jurisdictions that is only when comparing it to jurisdictions that actually charge VAT or sales tax.
Click to expand...


On the point of where the incidence of VAT is directed, that detail was not missed by me but I look at VAT proposals as part of an overall restructuring of the entire tax code. If small business tax proposals will assist in the creation and running of smaller business such that the benefit of stimulating small business is larger than any negative effects that an increase in VAT may have, I wouldn't see any problem with increasing VAT in such a scenario.

That was the point I was trying to bring across originally.

As for how the overall tax system should be structured, I will leave that to the experts and not the man in the street. I have worked with one or two people in the commission and they are extremely clever and very knowledgeable when it comes to tax policy.
 
Garson007 said:
VAT is just a tax on the poor. Possibly the worst tax you could increase. Drop all forms of taxes and tolling and whatever. Up the income tax. Only tax you need.
Click to expand...
If you do away with VAT the tax base will be reduced to only those who are working.
Where would that leave you if your entire income is taken as tax?
 
Hamster said:
I'm just waiting to see the impact of having to change all those hard coded 0.14's :p
Click to expand...

We've had to deal with Lesotho and Swaziland for a while, so that was never an issue.

Our new systems work on the basis of one national rate, or one provincial rate, or department rate (e.g. Luxury items), or item by item basis (since we already have zero rated items).

However, in addition there could be a customer rate (e.g. Pensioners or indignants) which we are contemplating.

It can get mighty complicated.
 
LaraC said:
If you do away with VAT the tax base will be reduced to only those who are working.
Where would that leave you if your entire income is taken as tax?
Click to expand...
It's actually entirely possible for a competent government to make do with income tax alone. The key word there is competent however. It has to be structured such that the poorer income bracket balances out with the higher income brackets. So that means taxing more people than currently. The problem in South Africa is that the gap between the poor and the rest is so large that you would need to reduce the taxable bracket to a really low value to make it worthwhile.
 
etienne_marais said:
He says it will also bring South Africa more in line with international trends – the local VAT rate is lagging slightly behind comparative jurisdictions. But while the numbers might point to a higher VAT rate as a potential solution, the issue is all but a simple one.
http://www.moneyweb.co.za/moneyweb-tax/vat-at-16
Click to expand...

WTF are these new by-words being used "International Trends" ?

What has S.A.'s VAT got to do with "international trends" anyway ? Other than an excuse to raise it.

If one goes by that thought process then, can we hope for a less corrupt government more in line with "international trends" ?
 
Mike Hoxbig said:
I wonder what the breaking point will finally be when everybody says that enough is enough. I actually hope they go through with this just so that we can get closer to it...
Click to expand...

as long as the masses get free stuff/food/electricity it will never change.
 
/Of topic

The idea is to reduce the budget deficit and government employee salaries take a huge bite from revenue.
Is it possible that government exempt their employees from paying tax and reduce their annual salary with the amount they would have paid?
It will result in a cost saving with future salary increments.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X