VAT in South Africa : what kind of rate structure?

The merits of VAT as a revenue-productive, neutral tax are not in dispute. The only issue which has been discussed in South Africa is the rate structure. In this article the author examines the issues, and compares the conclusions of the Katz Commission with the findings of impact studies in various OECD Member countries. The author concludes that progressivity in product taxation can best be achieved through taxes other than VAT.