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Local government wants even more taxes: report

Local government wants even more taxes: report

The South African Local Government Association (Salga) has stated that it is time for “the third tier of government” to participate in the tax regime.

According to a report by the Sunday Times, the association – which consists of SA’s 257 municipalities – wants to introduce a local government tax.

The report stated this will likely be in the form of a business tax.

One of the proposed options is the introduction of a new tax. Another option put forward was the allocation of a percentage of existing taxes levied by national government.

Alan Mukoki, CEO of the South African Chamber of Commerce and Industry, said the proposals would lead to job cuts if carried out.

The report follows economist Dawie Roodt stating that higher taxes in South Africa were part of a ravenous state that continues to parasitise the productive sector.

Roodt added that a tax revolt may be next, while other commenters said wealthy South Africans will leave the country if put under more financial pressure.

Finance Minister Pravin Gordhan recently announced an increase in income tax for certain individual, along with a hike in the fuel levy, excise duties for alcohol and tobacco, and the dividend withholding tax rate.

Read: A new tax could be the one thing that stops South Africa’s financial system from collapse

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  • Lacrimose Wolfe

    Hmm, well it seems this govt has not learnt from 1000 years of history of taxation – eventually people just refuse. And then start chopping people’s heads off. Increased taxation just shows a spectacular lack of imagination in all tiers of government. We already have 17 Million grant recipients vs a 7 million tax-paying base. 7 million out of a potentially 14 million tax base, in a country of circa 54 million. Even if you’re really rubbish at long division, 7 million divided by 31 million, just doesn’t go. This third tier will end in tears

    • Tommy

      I thought it was in the region of 3,5 million tax payers. We need articles on legal tax avoidance

  • Ubaba meet Baba

    Lol! This is like taking candy from a baby! So it’s now a choice between being taxed more by a parasitic, wholly corrupt ANC government who already steal R64 billion a year, or vote for the visible change that a corruption free DA has already demonstrated, which will see that R64 billion go where it’s supposed to and more than likely lead to tax cuts all round?

    Bring on 2019!

  • lino_lupus

    There is not enough moolah to pay for new cars for the ANC cuntcillors……I guess…

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