By Taku Fundira –
IN response to the article, “VAT burden on the poor bothers government” (May 28), I concur on some issues, especially the importance of social grants, and also suggest a way forward when it comes to addressing poverty and inequality in South Africa.
Given the critical need to address the unsustainably high levels of income inequality, the use of fiscal policy as a tool for redistribution requires serious engagement. On this, the two main suggestions we make involve personal income tax and the flat-rate value added tax (VAT).
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