VAT a time bomb continuing to tick

Employed and unemployed South Africans were not happy with the increase in the VAT from 14% to 15% which was proposed by the former minister of finance Malusi Gigaba. The unhappy citizens together with the organisations who also opposes the VAT increase engaged themselves in an anti-poorer 2018 budget. The petition signed by the by a large number of individuals and anti-poverty organisations rejected the VAT hike.

the petition suggested some ways that can be used to raise more funds to the state other than increasing the VAT. These ways which were suggested in the petition were increase in the taxes imposed on corporates and high income earners. The other alternative was the increase in the so-called sin tax on alcohol and tobacco.

VAT is a regressive tax meaning the poorer will suffer the most in the VAT increase than the high income earners. I am also opposing the increase in VAT and supporting the alternative proposed by the petition. Increasing the taxes charged on alcohol and tobacco will decrease the consumption of those goods because they will be too expensive. Decrease in the consumption of tobacco and alcohol will have a good impact on the South African wellbeing and health department as these goods are harmful to the health of the users.

SOURCE: https://www.fin24.com/Budget/inside-labour-vat-a-time-bomb-continuing-to-tick-20180302

Comments

  1. mazara2 March 2018 at 08:34

    I think this proposal will not be implemented as Gigaba is no longer the minister of finance...

    ReplyDelete
  2. Unknown2 March 2018 at 09:34

    Honestly I'm more worried about the people in the working class because this will cost more on them than the poor. They already have PAYE tax which supports the poor, atleast this VAT burden will be carried by everyone so I'm not really against the increase.

    ReplyDelete
  3. Lutho Qakaza2 March 2018 at 10:53

    This increase in VAT will help stabilize the economic outlook of our country, VAT at 15% is still low compared to some other countries like Argentina etc.



    ReplyDelete
    Replies
    1. SIFUNDO NJEBEDULANA2 March 2018 at 13:07

      When comparing SA's Vat to other countries Vat i think you must also consider the fact that South Africa is still a developing country as compared to greater countries like Argentina. This means that workers in South Africa are not earning as much revenue as workers in Argentina.Vat that is too high in SA will cost our parents because their pension grant is not going to increase now that Vat has increased.Therefore they will have to adjust their usual things that they used to buy because now things are expensive and right here it is when poverty will fit in. My opinion anyway.

      Delete
  4. Unknown2 March 2018 at 11:09

    This is going to affect our country negatively.

    ReplyDelete
  5. SIFUNDO NJEBEDULANA2 March 2018 at 12:49

    The suggestion that the sin tax on alcohol and tobacco should be raised is excellent.This is because people will buy less alcohol and drugs thereby decreasing things like crime in South Africa.According to research it is said that alcohol and drugs contribute too much on SA's crime.So, tax on alcohol and tobacco must be increased to our economy's advantage.Vat increase will affect poor people very bad.It will cause poverty because poor people who earn lesser income will not afford to buy expensive grocery and other things as well.

    ReplyDelete
  6. Nonopha Maquthu3 March 2018 at 02:03

    They should have thought of and considered the consequences that will be caused by this increase in VAT.
    This was very sudden to some people.
    A lot is still going to happen, just watch and see.

    ReplyDelete

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