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VAT rate goes up to 15% on Sunday (yet remains among the world's lowest)

27 March 2018 8:15 PM
Tags:
VAT
PWC
Value added tax
The Science Of
Charles de Wet

The Money Show’s Bruce Whitfield interviews Charles de Wet, partner at PwC.

Around the world, it seldom happens [that VAT rates are reduced, once raised]…

Charles de Wet, PwC

In African and global terms; a rate of 15% is quite low…

Charles de Wet, PwC

Value added tax (VAT) is a type of general consumption tax, collected incrementally, based on the increase in value of a product or service at each stage of production or distribution.

VAT raises about 20% of total tax revenues worldwide.

166 of the world’s 193 countries have VAT.

VAT in South Africa was set at a rate of 14% in 1993.

Former Finance Minister Malusi Gigaba announced on 21 February 2018 that the VAT rate will be increased by one percentage point to 15%.

Some basic food stuffs, as well as paraffin, will remain zero rated.

The new rate will come into effect on 1 April.

The Money Show’s Bruce Whitfield interviewed Charles de Wet, partner at PwC, for his weekly “The Science Of” feature.

Listen to the interview in the audio below (and/or scroll down for more quotes from it).

VAT is a better tax than a tax on income…

Charles de Wet, PwC

The difficulty with exceptions… you should avoid them…

Charles de Wet, PwC

…people’s eating patterns have changed [since the zero rated list was compiled]…

Charles de Wet, PwC

[Complaints about the VAT hike to 15% were] Much less than people anticipated… The writing has been on the wall for a while…

Charles de Wet, PwC

We need the company tax rate to come down… As an investment location we need to be competitive…

Charles de Wet, PwC

Any broad-based tax gets a better result…

Charles de Wet, PwC

Click here (then “like” the page) to follow Bruce on Facebook.

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27 March 2018 8:15 PM
Tags:
VAT
PWC
Value added tax
The Science Of
Charles de Wet

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