The road to a healthier and sustainable fiscus and economy should not be paved with increases in personal taxes or the current VAT rate, although both these eventualities remain on the horizon, says Bernard Sacks, a tax partner at Mazars in South Africa.
Speaking at a recent roundtable discussion, Sacks outlined what he expects from finance minister Enoch Godongwana when he presents his inaugural budget statement on 23 February.
Doing so, however, will impact an already high inflation rate both in South Africa and worldwide, and the finance minister will need to tread lightly around this issue, he said.by AJM tax director Pieter Janse van Rensburg, who noted that VAT is the tax that will deliver the quickest windfall for the fiscus and could be used to help fund significant costs such as a basic income grant.
“We already have two VAT rates, so it is theoretically possible to have two-five different rates depending on the types of goods or services purchased,” he said.
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