The Impact Of VAT On The Ordinary South African

There is a massive gap in the country’s finances, to put it bluntly. South Africa has an R48-billion hole in the fiscus that needs to be filled, and part of Finance Minister Malusi Gigaba’s solution in last week’s 2018 Budget was to push up value-added tax (VAT) by one percentage point, to 15 percent, as of April 1, 2018. This is the first increase in VAT in 25 years.

But what does this increment mean to taxpayers? Will poor South Africans suffer even more, or is this the way for the…

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