Bloomberg Law Highlights SA-TIED Study on VAT and Social Protection

A working paper from SA-TIED, "Tax Financing Options for New Social Protection Instruments," was recently featured by Bloomberg Law. The study challenges traditional views on VAT increases, suggesting that when the additional revenue is used for targeted social programs—such as grants or universal basic income—it can reduce poverty and inequality, offsetting the regressive nature of the tax.

The findings offer important insights for policymakers, emphasizing that effective social spending can transform a regressive tax into a progressive one.

Read the full article on Bloomberg Law here.