Budget 2021

VAT could generate more revenue than wealth tax - expert

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Johannesburg – Increasing the VAT rate could be more effective in closing the tax gap than an increase in taxes for the wealthy, says an expert.

Speaking at a pre-budget briefing, head of tax at Norton Rose Fulbright Andrew Wellsted explained that VAT is a more inclusive approach to raise tax revenue.

“VAT is transactional. Everyone transacts so everyone raises taxes,” said Wellsted. An income tax comprises a limited tax base, whereas VAT accounts for the entire population.  

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