Food prices are too high for some households to bear but more targeted relief might have a greater impact
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In its economic survey, the OECD recommends increasing VAT or broadening the base of corporate and personal income taxes to pay for the grant
But the South African Revenue Service doesn’t yet have the skills and multiple users to adopt it
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Government spending has reached a record 41.7% of GDP, and the budget deficit has widened from 5.7% in 2019 to an estimated 14%
VAT should not be hiked, but a once-off levy on mineral resources or a solidarity tax seems likely
About R8-billion was lost during the hard lockdown and revenue is being slashed further