EVERY year in July I start filling in my tax form.
I run a small business and so this is a lengthy and complicated process taking many hours out of my day.
This can take weeks to do before it is submitted. This exercise is repeated by many small businesses and individuals around the country.
Millions of hours are lost to filling in stupid forms, securing documents and checking everything is correct.
If your form gets rejected for some reason and you are summoned to appear at a SARS office then you are in the hands of the Gods. Long queues, frustrating delays, systems stop working and tired staff who don’t really want to be there.
Here again people waste productive time and effort.
I feel that the present system of tax collection is antiquated, slow and demeaning.
So the solution is simple increase VAT to a level such that it covers income tax. That way the more you earn the more you spend the more tax you pay.
To say that it will affect the poor is nonsense. Firstly the social grant can be increased and secondly basic items can be zero rated.
So the benefits will be that more time can be spent on productive endeavours rather than filling out tax forms.
VAT collection is an efficient way of collecting tax. Everyone will pay even those who are here illegally and those in unregulated industries.
For those people who hoard their money, VAT can be applied to savings accounts. SARS staff can then concentrate on VAT collection and controlling our borders to stop illicit trade.
Taxed Out
Kloof
