Abstract
M.Com. (South African and International Taxation)
Tax policy is important on many levels. It directly affects all members of society. The
gender impact of these polices is often overlooked. The study was motivated by the
potential existence of unintended gender discrimination within various indirect taxes.
Tax policy has real repercussions on household budgeting and spending. The impact
is likely to differ between the genders and this should be taken into account when
setting tax policy in order to maintain fairness.
Value Added Tax and the national lottery are all regressive taxes and affect the poor
more than the wealthy. In light of the feminisation of poverty, as well as different
household responsibilities and spending patterns between men and women, the
gendered effect of this regressive tax is significant. This study considers whether
South Africa’s indirect tax legislation and policies result in gender discrimination and
what the potential solutions are. A largely qualitative approach was undertaken in
executing the research. This entailed detailed reading on the topic to support any
inferences and conclusions.
This study finds that indirect gender discrimination exists in South Africa’s indirect
taxation system and policy. The discrimination arises mostly due to the regressive
nature of indirect taxes. These taxes have far larger ramifications for the poor.
Women make up most of the poorest people both in South Africa and around the
world. Men and women also spend differently and their spending and decision
making directly affects household disposable income. The result of these gendered
spending patterns could be said to put woman at a disadvantage in certain cases.
The introduction of additional zero-ratings on children’s clothing and personal
hygiene products could go far in addressing discrimination without a huge impact to
the fiscus.