The blatant squandering of tax money has had a devastating effect on the government’s ability to collect taxes
South Africans have shown their disgruntlement with the government’s ineptitude to deliver the services they are entitled to by way of violent public protests.
Johan Troskie, independent tax and commercial law specialist, says after years of state capture and state neglect the South African Revenue Service is going to find it difficult, if not impossible to collect the R1.45-trillion income budgeted for the 2020 tax year. All those challenges are present in SA — a small tax base, a large informal sector, weak governance and administrative capacity, low levels of per capital income and possible tax avoidance by the “elite”.
The state coffers had to be propped up with a percentage point increase in the VAT rate, and several stealth tax increases. The study also shows that citizens who perceive democracy to be the best system of government for their country tend to think that cheating on their taxes is unjustifiable. “There is very limited patience among taxpayers, and taxpayers expect to see clear signals of positive change within this calendar year.”
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