Thank you for the very technical description of VAT. Value-added tax is still the best tax as it is a consumption tax. The more you consume, the more you pay, and it does not ask you for anything such as a certificate, tax, or ID number, or anything related to your status in life.
In my view, the zero rating of the foodstuff is just a popular trade-off without any real value. Let us take 2% and give you some insignificant trade off.
It just creates more compliance costs and the legislative part thereof is always very difficult to draft, enforce and comply with. Suppliers need lots of rules and such, the cost to comply ends up in the cost of the product. Just another issue for SARS to pick on.
If all the taxes we pay were collected correctly, the government should in theory be able to apply it to the grants or department where it is needed. My concern is that it is collected and then mismanaged.
Why are we looking backward to fix future income, but not looking backward and asking why we are here?
I am not supporting the VAT increase, as it does not come with a guarantee that we will have the same arguments a year later. Last year, we took gold reserves, it seems at budget time "let's pick the low hanging fruit" to fill the gap without any forward thinking. Kick the can down the road.
For example, if we make the retirement age of government employees, let's say 65, the majority of the persons currently in control would have made "space" for the 55 year olds with hopefully a rejuvenated thinking process.
When are we going to run South Africa as a business?
Considering South Africa’s history over the past 30 years, it seems that no matter what is done, any available extra money will again disappear into the coffers of the government officials, that seem to have bottomless pockets.
Some interesting supportive quotes
• A thief is not a thief until caught once. Once caught, a thief is always a thief.
• We hang the petty thieves and appoint the great ones to public office
• Men do not despise a thief, if he steals to satisfy his soul when he is hungry;
• Opportunity makes a thief.
• Never was a government, that was not composed of liars, malefactors and thieves.
• The greatest crimes are not those committed for the sake of necessity but those committed for the sake of superfluity.
Whatever they do, nothing can be expected to change.
Why do we not borrow from ourselves from institutions like the JSE or PIC? In principle, I agree with you that we have run out of road but I don’t think increasing VAT is the right decision given the economic outlook.
Thank you for the very technical description of VAT. Value-added tax is still the best tax as it is a consumption tax. The more you consume, the more you pay, and it does not ask you for anything such as a certificate, tax, or ID number, or anything related to your status in life.
In my view, the zero rating of the foodstuff is just a popular trade-off without any real value. Let us take 2% and give you some insignificant trade off.
It just creates more compliance costs and the legislative part thereof is always very difficult to draft, enforce and comply with. Suppliers need lots of rules and such, the cost to comply ends up in the cost of the product. Just another issue for SARS to pick on.
If all the taxes we pay were collected correctly, the government should in theory be able to apply it to the grants or department where it is needed. My concern is that it is collected and then mismanaged.
Why are we looking backward to fix future income, but not looking backward and asking why we are here?
I am not supporting the VAT increase, as it does not come with a guarantee that we will have the same arguments a year later. Last year, we took gold reserves, it seems at budget time "let's pick the low hanging fruit" to fill the gap without any forward thinking. Kick the can down the road.
For example, if we make the retirement age of government employees, let's say 65, the majority of the persons currently in control would have made "space" for the 55 year olds with hopefully a rejuvenated thinking process.
When are we going to run South Africa as a business?
Should not Substack itself be charging VAT in South Africa?
If enough paid subscribers join, I will indeed have to pay!
Considering South Africa’s history over the past 30 years, it seems that no matter what is done, any available extra money will again disappear into the coffers of the government officials, that seem to have bottomless pockets.
Some interesting supportive quotes
• A thief is not a thief until caught once. Once caught, a thief is always a thief.
• We hang the petty thieves and appoint the great ones to public office
• Men do not despise a thief, if he steals to satisfy his soul when he is hungry;
• Opportunity makes a thief.
• Never was a government, that was not composed of liars, malefactors and thieves.
• The greatest crimes are not those committed for the sake of necessity but those committed for the sake of superfluity.
Whatever they do, nothing can be expected to change.
Why do we not borrow from ourselves from institutions like the JSE or PIC? In principle, I agree with you that we have run out of road but I don’t think increasing VAT is the right decision given the economic outlook.