Our debt-to-GDP ratio is growing, we're running a problematic current account deficit, state-owned companies are a drag on the economy and our bloated public service wage bill needs to be trimmed. We're running out of money, and fast.
After the 1% VAT increase there is no more room left for government to try and increase fiscal revenue from a tax perspective, says Judge Dennis Davis.
In its latest Equality Report the SAHRC describes April's VAT hike as a regressive tax that impacts the poor the hardest.
The VAT to 15% raises the question of its impact on levies in body corporates, share-block companies and home owners' or property owners’ associations in SA.
VAT increase will involve savvy and responsible management of household finances
The VAT increase will add an extra percentage to everything, and all input costs will suffer from that and ripple down through the chain, says small business coach Anton Ressel.
Government will continue to engage stakeholders in a bid to cushion the poor from the impact of the VAT increase which comes into effect next month, says Finance Minister Nhlanhla Nene.
The SAHRC has said the economic challenges that prompted the recent fuel levy and VAT hikes as announced in the budget could have been averted.
The final list of recommended zero-rated products is estimated to cost the National Treasury R4 billion in lost revenue.
The effects of the 1% hike in the rate of VAT, effective on April 1, in the first two months of the 2018/19 tax year was evident, with tax collections for the period up significantly from a year ago.
It is indicative of a fraught and racially-charged history in South Africa, and the perpetuation of social and structural inequality when gardening and domestic work are not viewed as services provided.
'Your favourite cappuccino or quinoa wrap will become a touch more expensive on April 1 but what about that vehicle upgrade you’ve been arranging finance for?' writes Lance Branquinho as he ponders the affect of a VAT increase on cars.
There was not enough money left in the 2018 Budget to fulfil the ANC’s repeated promises to promote job creation by supporting small businesses.
Trade union federation Cosatu has rejected the proposed one percentage point hike in VAT that was announced by former finance minister Malusi Gigaba in the budget.
The Cyril Ramaphosa honeymoon was abruptly cut short when Malusi Gigaba presented a budget for 2018 that is intended to harm poor people, as well as the middle and working classes, writes Lukhona Mnguni.
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