PBO proposes new tax on digital services

[Jamie McKane]

PBO proposes new tax on digital services

The Parliamentary Budget Office (PBO) has proposed a digital tax on consumption and income generated by digital economic activities and cross-border activities.

This formed part of a presentation ahead of finance minister Tito Mboweni’s Medium-Term Budget Policy Statement next week.

 

[Sarg3_ZN]

Must suck to be living in Border, every time you get cross over activities you gonna have to pay a tax

 

[deweyzeph]

This proposal makes no sense. All income falls under income tax, so to say that income from digital activities are not being taxed is just a lie.

 

[Mekon]

Must suck to be living in Border, every time you get cross over activities you gonna have to pay a tax

It sucks living in South Africa when evey few weeks the cANCer are coming up with ways to fleece everyone of money becuase they are running out of our money. cANCer are an absolute disgrace

 

[DailyTech]

cANCer is caused often by BEEs

 

[lordnokon]

F00k this government and all its **** plans..... They will tax us into the grave...

 

[Jet-Fighter7700]

F00k this government and all its **** plans..... They will tax us into the grave...

BMW coming out with new models, somebody got to pay for it you know.

 

[Rocket-Boy]

Shem, gubbamint has no money left so they are trying to squeeze the last few drops out. Cant steal money if they isnt any.

 

[Jet-Fighter7700]

Shem, gubbamint has no money left so they are trying to squeeze the last few drops out. Cant steal money if they isnt any.

no problem, lets print money Africa style!
lets make 100 trillion billion Rand and move decimal points and make toilet paper worth more than paper money.
that will fix it, just you wait and see, you foreigners.

 

[Gazg]

Yep.......just keep taxing the **** out of SA, that should sort it all out.

 

[grok]

Commie minds cannot fathom capitalist wealth, thinking that they can tax themselves into prosperity..

 

[quovadis]

Govt doesn't get that there's a point at which people will find it worthwhile to push the envelope to legally minimise their tax burden by being cross-border too

 

[Swa]

This proposal makes no sense. All income falls under income tax, so to say that income from digital activities are not being taxed is just a lie.

Article is not making sense. Of course everything is already taxed. What they are proposing is an extra tax purely because something is digital.

Commie minds cannot fathom capitalist wealth, thinking that they can tax themselves into prosperity..

But they can and have taxed themselves into prosperity. They can't tax the nation into prosperity. This is why communism is so popular in the world because it's about enriching a few elites.

 

[Fuzzbox]

The government is getting desperate now.
All available revenue streams are starting to dry up.
They are imagining new schemes to help keep the trough full .
Your time is up now.

 

[Leno]

They are talking about taxing digital transactions between overseas companies and South Africans.
Right now they can only levy VAT.

Makes no sense to want to tax something where the gov has not provided any services to these companies in return for this tax.

 

[Fulcrum29]

This is now becoming more insane. How many more 'added' taxes do the government want to impose on us?

All my income is derived digitally. I have constructed a business on 'digitised' consultation services and commissions. A lot which is related to cross-border activities.

Go steal elsewhere.

 

[ld13]

So who is starting a VPN service of sorts in Lesotho?

 

[Fulcrum29]

So who is starting a VPN service of sorts in Lesotho?

This is not the first time the PBO has promoted a digital tax, noting that in 2014 South Africa was one of the first countries to introduce tax measures on the consumption of digital products through VAT.

However, South Africa has continued to lose revenue because it does not have measures in place to tax the income raised by digitalised economic activities.

“Given that South African corporate tax revenue as a share of revenue has declined over the years, and that more businesses have become more digitalised, it is necessary to consider taxation measures that enable revenue to be raised from digital economic activities income,” it said.

“By applying this approach, South Africa would be following recent international trends, which would not only guarantee additional needed revenue but also ensure that all business activities contribute their fair share into the fiscus.”

The PBO said South Africa could also generate additional revenue from customs duties on cross border digital economic activities.

It noted that the current tax regime only makes provision for custom duties for non-digital cross border products and services.

As much as this is a digital tax, it will always be an accounting mechanism. The statement tackles two separate revenue streams. All in all, they want it declared and taxed.

 

[system32]

#VoetsekPBO
#VoetsekSARS

All taxes are ultimately paid by the consumer.

#NoMoreTaxes

 

[RonSwanson]

Lekka man