Attorney Michael de Broglio on: South Africa, Law, Politics, Attorneys, Sport, Photography, Technology, Gadgets, Media, Crime, Road Accidents Fund,
Divorce, Maintenance, Personal Injury, Medical Negligence
As I have written many times before, with the number of Government employees that we have and the grants, compared to the income coming in, then something has to give. That probably means that we as taxpayers will be the something – we will have to give more money to the Government. We need to give more money to the government for all of the social grants, the massive bureaucracy we have built, not to mention Nkandla, corruption, etc.
They are really beginning to talk about this year’s budget and where we will see those increases, but to me, the obvious answer has already been suggested by Judge Dennis Davis who was asked to put together a commission for this, and did so. He pointed out that the average VAT rate around the world is 15,5% and in that regard South Africa is charging less than the average VAT rate at 14%. The VAT rate in the UK is 20%. VAT or Value Added Tax is the most effective way of collecting tax and minimises tax avoidance. It taxes consumption, and people can minimise their exposure to VAT by buying less, but if income tax rates do go up, there is no hiding for anybody who earns above the threshold. A lot of people are in favour of all sorts of benefits, not to mention the CCMA – well, over the next few years they are now going to really start paying for them.
Posted by Michael de Broglio on Monday 20-Feb-17
Post a Comment
Comments
Brenda van den Bergh said:
on Tuesday 14-Mar-17 03:55 PM
No matter where the government tries to make money, we as the hard working community will end up forking up thousands of rands to be paid towards government funding. I however do think that increasing the VAT rather than PAYE will be more effective. It will limit consumers from spending as much as they usually do, but it will also create an opportunity for people to spend less money on unnecessary things that they do not need, and the economy may just rectify itself? Just a thought.
Lourien said:
on Wednesday 01-Mar-17 11:10 AM
I honestly think that if they increase our VAT then they should also increase our benefits, when they increase our VAT it would probably go for higher salaries and more parties that the government will have and they are not giving back or investing in the country as they should, all other countries paying higher VAT rates actually gets services back from the government that is worth it such as excellent hospital facilities which we do not have , so I do not see this as being a good idea, we will just be paying more and still be receiving less from the government.
Melissa van Tellingen said:
on Wednesday 01-Mar-17 08:29 AM
This has been a long time coming. I really think that the general public will certainly not be happy about it. I just don't see how the extra money will make SA a better place as we struggle to maintain the general things in SA.
Liz said:
on Monday 27-Feb-17 03:44 PM
It appears the general consensus is that South Africans would not be opposed to paying more VAT, if they were certain of how the money is being used, as is the case in other more developed countries. I tend to agree with that stance and think an increase will only be fair if the allocation of these funds is dealt with in a transparent and responsible manner.
Dune said:
on Monday 27-Feb-17 10:16 AM
The benefits the UK citizens have are well worth the 20% VAT that they have to pay. They have Healthcare, Schools, and all sort of other benefits that goes along with it. What can we say for SA? Its not like they actually use the tax we pay to fix our roads, improve infrastructure, build more school, supply Government Hospitals with everyday necessities and competent training etc. We all know where our hard earning money goes to, and it will not change as long as the leaders in our country are the leaders in corruption.
Jessica M said:
on Monday 27-Feb-17 09:41 AM
You know it's a sad case that people from other African countries, come here have babies and claim grants even though they have put NOTHING into our country. All they have done is have a child to support them. This is the sad part that this country lacks, the real people such as the old people who worked for years, put in money every month to pay their tax, now gets nearly nothing in their retirement to help them get by, due to these grants for all these people having 100 babies. It's sad actually. I would run things differently. I wouldn't pay for people getting grants for children, I would pay towards a children home and advise them to take their child their since they can't afford to look after them.
Helen said:
on Friday 24-Feb-17 03:48 PM
Government can not do much with 14%, how 1% or 1.5% will change this situation? All the government institutions are in the terrible condition still, there is no benefits for public, minimum pension and grants people can not survive! the percent only will increase the prices and life will become more expensive!
Joyce said:
on Friday 24-Feb-17 11:58 AM
I think it would be better if the saved money would be used to make SA better and not used for corruption.
Liesl said:
on Friday 24-Feb-17 09:29 AM
The UK's taxes might be higher but the benefits that go along with it for the citizens in the UK cannot begin to compare to SA not even to talk about the mismanagement and corruption that takes place with public money.
Nicky said:
on Wednesday 22-Feb-17 04:58 PM
I wouldn't mind paying extra on taxes-especially if I KNEW that it would contribute towards what it's intended for-education; housing; healthcare. Unfortunately in South Africa we have no guarantee that our taxes contribute towards this and there's a greater chance that its being used to line some government officilas pockets and add to their luxurious living.
brumilde said:
on Wednesday 22-Feb-17 11:10 AM
I am also sure they need to look at our economy when deciding to increase VAT... this subject about what the government does with the money we pay is a fight ongoing. Public hospitals and Schools are deteriorating ... but we can have big houses and fancy cars/..
Jolene said:
on Wednesday 22-Feb-17 09:14 AM
I think we are going to see a 1% increases today, not particular happy about it. We cannot be compared to the UK, that is ridiculous.
Ashleigh said:
on Wednesday 22-Feb-17 08:52 AM
Yes, they must increase Vat for the right reasons, not to throw functions that are costing millions each time. People wouldn't have a problem with paying more if they could actually see the results and change. Obviously you don't want to work hard and pay for something you are unable to see that's making a change.
Lucretia said:
on Wednesday 22-Feb-17 08:49 AM
I am in favour of the VAT price going up, this way everyone will be affected and hopefully then those who keep voting in the corruption, we have become accustomed to, will start looking at voting in someone who is not going to spend R284 million on a home that will eventually hit our pockets. Today's budget speech is going to be an interesting speech to watch/hear.
Cornelie said:
on Wednesday 22-Feb-17 08:40 AM
It is so unfare that you as a tax payer must struggle every month just to pay for someone elses fortune.
Sarah said:
on Wednesday 22-Feb-17 08:37 AM
Its how our money is getting use that upset us all, not the fact that VAT is increasing. They should t use the money on making South Africa a better country and actually helping the people with the money.
Zanell said:
on Wednesday 22-Feb-17 08:35 AM
So we just need to pay more Vat so that the Government can have more money to misuse, that's really how I feel, if they could show us where our money is actually going to, I wouldn't mind paying if it was actually benefiting the people and not government employees only.
Brenda Du Toit said:
on Wednesday 22-Feb-17 08:10 AM
I don't know how I feel about a VAT increase.if the money was used properly, am sure all of us will be happy to pay tax
Thabitha said:
on Wednesday 22-Feb-17 07:46 AM
I just wish the money that is paid for grants was paid to great jobs for young people and better things for our country, I don't see why the government has to be the one benefiting while the rate of poverty is so high.
Michelle said:
on Tuesday 21-Feb-17 12:05 PM
The sad truth is the middle class and poor people will never be able to keep up with all the increases of the country. Even though our salaries may increase all the other expenses get more expensive. It’s true what everyone says that we are working so hard for our money and the government just take everything. And we don’t get anything back for it.
Mathilda said:
on Tuesday 21-Feb-17 12:04 PM
Only time will tell what effect it will have on our economy if the TAX gets increased or not, either way our taxes are going to a "useless cause" as our country is just going further down the drain
#corruptionmustfall
Henrietta said:
on Tuesday 21-Feb-17 09:11 AM
I don't know how I feel about a VAT increase. I know that the fact that it goes to our corrupted government does not make me happy at all. The cost of living is already expensive and to see where our hard earned money goes to it really makes a person negative.
Alexis said:
on Tuesday 21-Feb-17 06:56 AM
Considering the VAT charged in other places, we are quite fortunate to have the amount we get charged. However I do not want to be paying more for it to go to corruption
patrick said:
on Monday 20-Feb-17 02:34 PM
while vat is the most in escapable way of collecting tax the elephant in the room is corruption. it pains to see how our taxes are used. if the money was used properly, am sure all of us will be happy to pay tax .increased or not increased if we don't use it properly to benefit every one, then the efforts of Sars are useless.
Angelique Jurgens said:
on Monday 20-Feb-17 01:57 PM
The reason I don't want VAT to increase is because that money is going to be put in corrupt officials back pockets. Will we be able to afford to buy groceries every month and have our basic needs covered? My answer is that we all going to have to buckle down. On the other hand it could be a good thing because perhaps we will get somewhere with this country of ours....
Daniella said:
on Monday 20-Feb-17 01:56 PM
This does seem like a better plan, we will only know for sure if it get implemented what the out come will be.
Melissa said:
on Monday 20-Feb-17 01:45 PM
I have nothing against VAT increasing but really we want to see what is happening with our money that we work so hard for. All you see is the government spending unnecessary money on things that is not necessary. They are also not doing anything for people living on the streets. They should concentrate on things like that. Nothing in SA is for free, you will have to work for it. We will have to wait and see what is going to happen.
Jadine said:
on Monday 20-Feb-17 01:38 PM
I am in total agreement with Judge Dennis Davis. The best way to ensure that all South Africans fairly contribute to these increases is by increasing the average VAT payable. The more you consume, the more you pay. This should also teach the slackers that if you want to increase the amount of kids you have just so that you can claim more social grants, it will hit you hard when you have to purchase more to feed all those kids!!!!
Nina said:
on Monday 20-Feb-17 12:45 PM
I am more than happy to pay the increase in VAT if we can actually see where and how it is being used to the benifit of our country. At this stage things are only getting worse and it is bacause of the lack of proper management of the country. If we can't sort that out, I don't think any increase in VAT is going to help.
Sinead said:
on Monday 20-Feb-17 12:09 PM
I am not totally against the VAT increasing because it's really the only way to get money from us, but the cost of living will increase dramatically as well. If they increase the VAT percentage, they must decrease the tax amounts that we pay otherwise we won't be able to survive. Let's see what happens though...
Angelique P said:
on Monday 20-Feb-17 10:33 AM
I think the budget speech is going to be interesting.
I don’t understand why we pay so much VAT if it does not benefit our country only the president and his staff. I don’t mind to pay more VAT but I want to see what is happening to that money.
Bianca said:
on Monday 20-Feb-17 09:58 AM
How can we possibly be taxed at the same amount that a 1st world country is? I think that this has been a long time coming but consumers certainly will not be happy about it. Something else in our country has to change, honestly all that the working class do is pay and subsidize for those who don't/those who couldn't be bothered to try in most cases. If we are to be taxed like a 1st world country, something also has to change in the regard to how our country is at the moment.
Juliet said:
on Monday 20-Feb-17 09:48 AM
South Africa cannot be compared to the UK. Look what UK citizens get in return! Safety, a 1st world country, an excellent public transport, education and medical system, and the list goes on. We should not have to pay more for anything! Why must we pay more when we are getting less and less in this country!
Tamaryn said:
on Monday 20-Feb-17 08:56 AM
I'm in favor of a VAT increase as opposed to an Income Tax increase, however due to corruption and mismanagement I do feel a slight resentment over having to increase either at all. There should be more than enough funding for government through the taxes South Africans already pay and if it was not squandered and ill spent South Africa would not be in the position we currently find ourselves in.
Clare said:
on Monday 20-Feb-17 08:30 AM
Well I have heard so much now about the increasing Taxes and Vat, all I no its just another add on to peoples life, it so expensive to live. People work so hard for there money and other people just take it.
Jessica Apfel said:
on Monday 20-Feb-17 08:08 AM
The price of basic commodoties will sky rocket - but in saying that a 'higher' basic salary has been implemeneted which may be considered relative to the inevitable increase in the cost of living. The government have to collect money from somewhere and an increased VAT rate seems the most likely source
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
