Cutting VAT and State to Help the Poor: Deepening Democracy through Access to Information

• Excessive taxation and ineffective government spending undermine economic growth in South Africa
• South Africa has experienced a decline in governance and corruption control
• Reducing government tax revenue could improve accountability and effectiveness in resource allocation
• Proposed reduction in Value Added Tax (VAT) rate to 11.5% and General Fuel Levy (GFL) to R1.73 per litre
• Cutting VAT would benefit low-income households the most and stimulate spending and business activities
• IRR Fellow Gabriel Crouse recommends a 3.5% cut in the VAT rate, with potential benefits for the population

Source: polity.org.za

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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