THE publication of Taxed Out’s letter: “Antiquated tax system is a waste of time” in last week’s Highway Mail, beggars belief.
The suggestion of replacing income tax with VAT is really incredulous if not ludicrous.
To replace income tax with VAT would necessitate VAT being increased to around 55 per cent.
Within weeks the hundreds of thousands of pensioners (who presently don’t qualify for it) would starve to death together with the millions on “benefits”. (Maybe that’s what Taxed Out has in mind).
Taxed out is not the only person having hardship with the system. I have been on pension for 27 years and have two letters from SARS back in 2014 telling me that I “never need to submit a tax return again” because my pension (along with thousands of others) will never reach the minimum tax level.
Except that I have had no less than four tax penalties over the ensuing period for failure to submit returns and have similarly spent days trying to sort out the mess each time.
Also the suggestion of applying VAT to those who “hoard their money” in savings accounts beggars belief.
People’s savings are the capital that banks exist on.
If everyone withdrew their savings the entire monetary system would collapse. (I would be the first to withdraw every last penny).
I would suggest that a lot more thought needs to be applied before putting pen to paper on a subject this complex.
C A Brockway
Crestview
