Cape Town - Even though increasing the value-added tax (VAT) rate by just one percentage point could raise R20bn in tax revenue, Finance Minister Pravin Gordhan may be reluctant to do this given the political resistance to such a measure, according to an analyst.
However, a tax consultant believes raising VAT could be a much fairer and quicker way to increase revenue than higher taxes on corporates and the super-rich, which may be detrimental to the economy. But what do Fin24 users think?
Responding to Finance Minister Pravin Gordhan's invitation for taxpayers' input, Kilaan writes: "Please do everything to avoid a VAT increase. Other than the poor, this will hit small business very hard. As a small business owner, who is trying to grow and employ, VAT payments are already burdensome.