Where Will The Additional Taxes Come From?
11 October 2013
Posted by: Author: Ingé Lamprecht
Author: Ingé Lamprecht (MoneywebTax)
An increase in tax collection as a means to try and reduce South Africa's budget deficit will most likely have to come from a fourth significant tax.
The budget deficit is expected to widen to 5.2% of gross domestic product (GDP) this year, but National Treasury aims to reduce it to 3.1% by 2015/16.
Speaking at the South African Institute of Chartered Accountant's (Saica) 2013 Tax Conference, Addressing the changes in the tax landscape, Prof Matthew Lester, tax professor at Rhodes University, said there is very little scope to raise more revenue from personal or corporate income taxes or value-added tax (VAT) - the three major sources of tax revenue locally.
According to the South African Revenue Service's (SARS) annual report for 2012/13, a total of R814bn was collected in taxes - 34% from personal income tax, 19,8% from corporate income tax and 26,4% from value-added tax (VAT).
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This article was first published on moneywebtax.co.za