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