Johannesburg- The ruling African National Congress (ANC) said the government must consider additional measures to protect the poor from the effect of higher sales tax, possibly by increasing the number of exempt items.
Finance minister Malusi Gigaba announced plans to raise the rate of value-added tax to 15% from 14% in the February 21 budget, a decision criticised by the ANC`s labour union allies and civil rights groups.
The National Treasury said the move was seen as the best option to plug a hole in the government`s finances and ward off further credit rating downgrades.
This increase of tax rate is not going to make any change but what will happen is that the poor will suffer
ReplyDeleteNow that value added tax is raised to 15% households will bear more burden .Therefore ANC government is indeed in good point by saying that increment of exempt items must be considered
ReplyDeleteI don't disagree with the fact that the VAT percentage was increased, but to think of those people who are not financially stable this will affect them negatively so I think it would be a great idea that they must increase the number of exempt products.
ReplyDeleteI agree with the 15% vat since social grant is gonna increase too.
ReplyDeleteAn increase in VAT is good for a growing economy but it has a bad impact on poor people, they will suffer from poverty.
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ReplyDeletethe government is trying to raise funds so that they can finance free education.....i know it will affect poor people but where do you think government can get money for free education as students wants free education for all
ReplyDeleteThe increase in the tax rate to 15% will make the poor to suffer even more
ReplyDeleteHeey! If the only way to increase revenue and improve economic growth was to increase VAT, I'd rather they stay the same for as long as nobody is gonna die... All I'm saying is, they shouldn't have increased it.
ReplyDeleteI don't think this increase in VAT is a good idea for our black community. This will only lead to more sufferings for the poor.
ReplyDeleteI am totally against the increase in VAT. People won't have any incentives to carry on working.
ReplyDeleteI am totally against the increase in VAT. People won't have any incentives to carry on working.
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