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Social activist and economist, Liepollo Lebo Pheko says South Africa has to go back to the price regulation in a much robust way to avoid retailers charging more on items they are selling.
This after the VAT increased on Sunday from 14% up to 15%.
Pheko says, “A lot of countries have been hesitant around the idea of having VAT tax because it becomes an elasticated mechanism usually going up for the state to try to recover cost and make up the tax deficit. I think we do need to explore different ways over and beyond VAT, because VAT doesn’t work well for developing countries, developing economies such as ours, and it usually ends up punishing low income earners.”
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