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IS THE INCREASE IN VAT A GOOD THING FOR OUR COUNTRY?

VAT to increase to 15% from 1 April




Finance minister Malusi Gigaba has announced that South Africa will see its first VAT rate increase for the first time in 25 years.

As of 1 April 2018, the effective VAT rate will rise from 14% to 15% adding approximately R22,9 billion to the fiscus, Gigaba said in his budget speech.

Personally, I do not think that this is a good thing for us citizens as goods are already way up there in prices. The finance Minister says this will help increase the countries revenues, but what about the people who have nothing and still have to feed their families with this increase in VAT?

If this is done then social grants should be increased more so people can live an almost comfortable life not fearing of going to bed hungry because of this. 


What do you think??

 https://www.dailymaveric.co.za


Comments

  1. Unknown4 March 2018 at 05:32

    Increasing the VAT rate by 1% is estimated to have the least detrimental effects on economic growth and employment over the medium term. The zero-rating of basic food items mitigates the effect of the increase on poor households.

    ReplyDelete
  2. Sam4 March 2018 at 05:45

    Yah...if so, then Social Grant should be increased so that it could be easier for everyone who can't afford to pay too much money

    ReplyDelete
  3. Zisisipo4 March 2018 at 06:40

    The government is letting down poor people. Maybe government should have increased other things and not affect the poor. Seems like in this world if you are poor you will remain poor for the rest of your life

    ReplyDelete
  4. Unknown4 March 2018 at 09:16

    This increase will have a huge impact on the growth of the economy. People will have less to spend on goods and services than they did before thereby resulting to people starving.

    ReplyDelete
  5. Unknown4 March 2018 at 11:49

    Increasing VAT is a great thing and I think the economic growth will be improved.

    ReplyDelete
  6. Unknown4 March 2018 at 13:13

    I don't believe that increasing VAT is such a good idea, social grants will increase and this will discourage people from seeking employment opportunities.

    ReplyDelete
  7. Unknown4 March 2018 at 13:31

    VAT increase is good for a growing economy but it has a bad impact on poor people.

    ReplyDelete
  8. Unknown4 March 2018 at 13:32

    This comment has been removed by the author.

    ReplyDelete
  9. ceeyakayone5 March 2018 at 05:21

    It is unfair to financially disadvantaged people because now they will struggle to afford even the basic needs.

    ReplyDelete
  10. Unknown5 March 2018 at 07:29

    VAT increase has both advantages and disadvantages. As there is free education in our country,it's necessary that Revenue must increase so as to fund for this free-education and this is beneficial for poor people. On the other side it's bad for poor people as prices will definitely increase. On overall I think it's a good thing because our economy will grow as more people will be educated and effectively the unemployment rate might decrease.

    ReplyDelete
  11. Unknown8 March 2018 at 06:43

    increasing vat is not a good idea, the government should try other strategies to raise revenue, the increase in the vat rate has more cons than pros

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  12. Awogile Yolanda Gwantshu8 March 2018 at 11:35

    the increase in VAT is a disadvantage for people as goods and services will increase even though there are zero-rated product, no one can fully depend on them

    ReplyDelete
  13. Unknown11 March 2018 at 12:12

    This is unfair. ...poor people won't survive in this situation

    ReplyDelete

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