This research paper examines the impact of value-added-tax on the poor people in South Africa. High VAT rates have significant implications for people in low-income households especially those living in poverty. VAT continues to drive the inequality gap between the poor and the rich in SA. The poor are more likely to experience the burden of higher VAT rates than the rich. Furthermore, research reveals that social security or assistance does not wholly offset the negative impact of VAT increases on the poor. Although it is one of the largest government revenue sources, VAT is regressive in nature. This research explores options to expand government revenue collection other than VAT and concludes that implementing progressive income tax and wealth tax and enhancing social benefits would achieve desired reforms.
- Examining the impact of value added tax hikes on the indigent people in South Africa : a comparative study
- Gundo Keith Ramaru
- Kiyasha Thambi Ms.
- University of Johannesburg; LLM
- LLM, University of Johannesburg
- 9963304007691
- University of Johannesburg
- University of Johannesburg; Department of Practical Business Law; Faculty of Law
- English
- Thesis