- South Africa is likely to increase VAT soon, as other tax options are exhausted and spending cuts are politically unfeasible.
- Corporate and personal income taxes are already at their limits, with further increases likely to reduce revenue.
- VAT is the second-largest revenue source, easy to collect but regressive, impacting poorer citizens more.
- Political parties publicly oppose VAT hikes but privately acknowledge the need due to rising government debt and unstable finances.
- The timing of the VAT increase is uncertain, but experts say it is inevitable given the country’s fiscal situation.
Source: businesstech.co.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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