Government May Raise VAT Above 15% as Other Tax Options Run Out, Experts Warn

• Economist Dawie Roodt warns a VAT hike above 15% is likely as the government runs out of ways to raise money.
• Raising personal or company tax further is not feasible, as most income tax comes from a small group already heavily taxed.
• Cutting government spending is seen as politically impossible for the ANC, making a VAT increase the easiest option.
• Business group Lula argues a VAT hike will hurt small businesses and working families already struggling with high costs and red tape.
• Lula suggests the government should focus on fixing infrastructure and reducing costs for small businesses instead of raising VAT.

Source: scrolla.africa

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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