New taxes & tax increases: An explainer
Friday, February 05, 2021
Value for money: Tax payers will have to bear more weight this year PIC: MORERI SEJAKGOMO
These tax changes come against the backdrop of constrained government mineral revenues as well as a dip in SACU and domestic tax collections which were occasioned by COVID-19. Below are the tax changes the Minister proposed to Parliament.
VAT rises to 14%
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...