The South African Local Government Association (Salga) has stated that it is time for \u201cthe\u00a0third tier of government\u201d to participate in the tax regime.<\/p>\n
According to a report by the Sunday Times, the association \u2013 which consists of SA\u2019s\u00a0257 municipalities \u2013 wants to introduce a local government tax.<\/p>\n
The report stated this will likely be in the form of a business tax.<\/p>\n
One of the proposed options is the\u00a0introduction of a new tax. Another option put forward was the allocation of\u00a0a\u00a0percentage of existing taxes levied by national government.<\/p>\n
Alan Mukoki, CEO of the South African Chamber of Commerce and Industry, said the proposals would lead to job cuts if carried out.<\/p>\n
The report follows economist Dawie Roodt stating that higher taxes in South Africa were part of a ravenous state that\u00a0continues to parasitise<\/strong><\/a> the productive sector.<\/p>\n 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.<\/p>\n Finance Minister Pravin Gordhan recently announced an increase<\/strong><\/a> in income tax for certain individual, along with a hike in the fuel levy, excise duties for alcohol and tobacco, and the\u00a0dividend withholding tax rate.<\/p>\n
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