Why Gordhan should raise VAT by 2%

[Kevin Lancaster]

Why Gordhan should raise VAT by 2%

Finance Minister Pravin Gordhan is expected to announce a number of tax increases when he delivers the 2017 Budget speech on Wednesday, February 22.

 

[Swa]

NO, just NO. Who is this staff writer? Stop wasteful expenditure. That's all that NEEDS to happen.

Although higher taxes on corporates and the super-rich may be popular ideas, they may be detrimental to the economy and raising value-added tax (VAT) may prove a much fairer and quicker way to increase revenue, said Tertius Troost, a tax consultant for Mazars.

A fairer way would be to have more people paying tax.

According to Troost, VAT has remained unchanged for quite some time. “It is also widely known that South Africa’s VAT rate is low when compared to other African countries, which is why we believe there is scope to increase.”

Actually it isn't when you compare it to average rates.

 

[longboy]

Raise VAT to 33.3%. Economic and political problems solved

 

[NarrowBandFtw]

Raise VAT to 33.3%. Economic and political problems solved

I might be willing to accept such high VAT if:
a) income tax is scrapped entirely
and
b) a lead pill is administered to numbawan's cranium

 

[Swa]

I might be willing to accept such high VAT if:
a) income tax is scrapped entirely
and
b) a led pill is administered to numbawan's cranium

Yup, no more tax and charge everybody on everything they buy. A completely fair solution.

 

[Beachless]

Raise VAT to 33.3%. Economic and political problems solved

You can make VAT higher than the pass rate. No-one will understand it.

 

[JayM]

45% marginal rate here we come...

 

[j4ck455]

Who is this staff writer?

I do however agree that increasing VAT by any amount is a terrible idea.

 

[Swa]

View attachment 419064

Weird, it only said staff writer when I was reading it.

 

[Oppiekoffie]

If the cANCer stop wasting money they can actually lower it

 

[Ho3n3r]

If the cANCer stop wasting money they can actually lower it

:crylaugh:

 

[jammio]

John rawls would like a word

 

[Drifter]

Make VAT 25%, scrap PAYE.

 

[greggpb]

Do it..... rather that than a paye hike...

VAT collect's from everyone who spends in relation to their spend. Better that only taxing those who are honest in the system

 

[Ho3n3r]

Do it..... rather that than a paye hike...

VAT collect's from everyone who spends in relation to their spend. Better that only taxing those who are honest in the system

Exactly. If they up it to say Drifter's 25% suggestion and scrap PAYE - if you only have R1 000 to spend, you only pay R250 tax. If you have R1 000 000 to spend, you pay R250 000 tax. How is that unfair in any way?

 

[konfab]

Exactly. If they up it to say Drifter's 25% suggestion and scrap PAYE - if you only have R1 000 to spend, you only pay R250 tax. If you have R1 000 000 to spend, you pay R250 000 tax. How is that unfair in any way?

The other thing to consider is that at least the criminals(and tax evaders) will start paying their fair share of taxes

 

[NarrowBandFtw]

How is that unfair in any way?

It doesn't hit white monopoly capital harder than the rest, so it must be unfair ...

 

[Ho3n3r]

The other thing to consider is that at least the criminals(and tax evaders) will start paying their fair share of taxes

Which should be the aim.

 

[Mike Hoxbig]

Make VAT 25%, scrap PAYE.

Not just PAYE, every other income tax. You should only be taxed on what you buy, that way everyone pays...

 

[Ho3n3r]

Not just PAYE, every other income tax. You should only be taxed on what you buy, that way everyone pays...

+1.

And it should encourage saving over spending.