RESEARCH
VAT hike to 17% is ‘the least bad option’ to fund BIG, research shows
Intellidex report says the government could fund a basic income grant via an increase in the VAT to raise at least R50bn
Hiking VAT stood out as the least fractious revenue raiser for a basic income grant (BIG) in a new study commissioned by SA’s most prominent business lobby groups as they weigh in on a proposal that has polarised economists and policymakers.
The 64-page report, conducted by research house Intellidex on behalf of Business Unity SA (Busa) and Business Leadership SA (BLSA), is the latest to make a forceful contribution on the proposal, which has become a recurring feature of welfare debates after the July 2021 protests morphed into a violent outpouring of anger over hardship, record high unemployment and inequality...
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