- South Africa’s VAT evolved from a 4% general sales tax in 1978 to 15% in 2018, with further increases expected.
- The tax system shifted from direct to indirect taxes, despite early promises that the rate would not exceed 4%.
- VAT replaced the general sales tax in 1991 due to issues like tax evasion and a shrinking tax base.
- VAT is now the second largest source of government revenue after personal income tax, contributing about 30%.
- Economists predict more VAT hikes, as it is seen as an efficient and hard-to-evade tax.
Source: dailyinvestor.com
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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