On Wednesday, 25 February 2015, the Minister of Finance Nhlanhla Nene will present his first Budget Speech to Parliament. The speculation of a VAT rate increase remains a much debated and prevalent point and coupled with other VAT “efficiency and equity” queries, is still under review by Judge Dennis Davis’s tax committee.
A VAT rate increase is a topical annual moot point, as is the question whether SA’s VAT rate is comparatively lower than other countries, for example, European VAT jurisdictions where standard VAT rates are 20% or higher. Furthermore, the VAT rate has not been adjusted for over 20 years and is, therefore, a pertinent case in point.
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