Burden too big for tax payers

Necuno

Necuno

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Burden too big for tax payers

Johannesburg - Finance Minister Trevor Manuel was "starting to spend a lot more," T-SEC economist Mike Schussler said on Wednesday, following the budget speech.

"For the first time his expenditure goes over 31% of Gross Domestic Product as total expenditure," Schussler said.

"This is a very big turnaround in a short space of time."

The fact that Manuel was opening up a deficit of 3.9% showed that the minister was concerned about the local and global slowdown.

"He's done the right thing by giving tax relief," Schussler.

He added that the government's guarantee of R176bn of debt held by Eskom was " a good thing".

Schussler said he was "a little concerned" about the allocation of R1.6bn to SAA.

"Every year we spend more on SAA - this current figure means that every person at SAA gets R160 000 for the year - a lot more than the average salary."

Schussler said that SAA was one of the entities the government should be selling - not supporting.

He said that the delay in mining royalties made absolute sense as commodity prices had fallen and many mines were under threat of closure.

Schussler said that while Manuel had allocated a large amount to social expenditure in the budget, it had to be kept in mind that there were 13 million people on social welfare.

"And there are only 5.3 million tax payers - so it's a burden on the tax payer - that worries me.

"We have to find another way - such as job creation," Schussler said.

- Sapa
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:eek::rolleyes:
 
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Well what's unemployment sitting at now? 40-50%? That's about 25 million people on it's own. Then there's all the employee who earn below minimum wage, the burden adds up quite quickly.
 
I drew up a list 2 years ago, it was shocking, take a look at the amount of tax you're paying:
14% VAT -> governmint.
40% (Varies a lot) Income tax -> governmint.
45% petrol tax. (I only have a 2005 article on petrol price breakdown ... http://www.ifleet.co.za/images/pdf/literature/fuelprices_southafrica_calculated_1116589733064.pdf ... bit outdated) -> RAF + Governmint + Customs + 8% retail profit + 7% wholesale profit + SASOL profits kept alive
Extremely high vehicle insurance cost -> crime.
High household insurance cost -> crime.
Personal security cost (Mamba, Chubb, ADT, ...) -> crime.
Tax on land you own -> municipality services.
Tax on buildings on your land -> municipality services.
Municipal fee's for services your tax should have paid for already -> municipality services.
Toll roads and Toll gates -> Job creation
Licencing Department Transaction Fee -> Enatis System and Profits
Yearly Vehicle License -> I don't know where this money goes.
5 yearly drivers license -> I don't know where this money goes.
SABC Television License -> Hate this one.
Airport Taxes -> Airports Company
Tax on pensioners pension money -> Governmint
Tax on early withdrawal of pension -> Governmint
Governmint levy on bank transaction charges -> Governmint
School Fee's -> ??????????

Ouch.
 
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That's beacuse so many people earn so damn little. People who have been working for comanies loyally for 20 years and don't even go home with 10k.

Many of them do pay tax they just aren't registered tax payers who file tax returns because they earn too little.

Also, since 2002 the number of tax payers in this country has nearly doubled.

And while the rest of the population may not file a tax return, they do pay VAT and other sin taxes.
 
marine1 said:
Huh? You telling me that so few people pay tax? What has that got to do with VAT? We all supposed to pay vat regardless...no?
Click to expand...

Well I also think that many simply don't fill in their tax return forms...

The Majority is being carried by the Minority.
The simple 80/20 rule..

;)
 
I'll gladly pay even more tax..

BUT

Sort out the crime, roads,electricity,water,health and education system and give me decent public transport suitable for professional people, like they have in london/ny/beijing etc.

and get rid of the ludicrous child grant system - girls are getting pregnant for pocket money.
 
Tax on petrol (government fuel levy) has increased with the latest budget speech, has it not?
 
Gaz{M} said:
I'll gladly pay even more tax..

BUT

Sort out the crime, roads,electricity,water,health and education system and give me decent public transport suitable for professional people, like they have in london/ny/beijing etc.

and get rid of the ludicrous child grant system - girls are getting pregnant for pocket money.
Click to expand...

Shhhhhhhhh...

That's how they get their votes...

;)
 
stoke said:
I drew up a list 2 years ago, it was shocking, take a look at the amount of tax you're paying:
14% VAT -> governmint.
40% (Varies a lot) Income tax -> governmint.
45% petrol tax. (I only have a 2005 article on petrol price breakdown ... http://www.ifleet.co.za/images/pdf/literature/fuelprices_southafrica_calculated_1116589733064.pdf ... bit outdated) -> RAF + Governmint + Customs + 8% retail profit + 7% wholesale profit + SASOL profits kept alive
Extremely high vehicle insurance cost -> crime.
High household insurance cost -> crime.
Personal security cost (Mamba, Chubb, ADT, ...) -> crime.
Tax on land you own -> municipality services.
Tax on buildings on your land -> municipality services.
Municipal fee's for services your tax should have paid for already -> municipality services.
Toll roads and Toll gates -> Job creation
Licencing Department Transaction Fee -> Enatis System and Profits
Yearly Vehicle License -> I don't know where this money goes.
5 yearly drivers license -> I don't know where this money goes.
SABC Television License -> Hate this one.
Airport Taxes -> Airports Company
Tax on pensioners pension money -> Governmint
Tax on early withdrawal of pension -> Governmint
Governmint levy on bank transaction charges -> Governmint
School Fee's -> ??????????

Ouch.
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Add to that the exorbitant cost of vehicles, telecommunications etc.

*weeps*
 
My pet hate is NON tax paying Taxi Operators. Do the sums on their income and see how much they get away with. Do they keep records of their transactions? I doubt that there is one single taxi operator in south africa that keeps valid books on their business.
 
Balstrome said:
My pet hate is NON tax paying Taxi Operators. Do the sums on their income and see how much they get away with. Do they keep records of their transactions? I doubt that there is one single taxi operator in south africa that keeps valid books on their business.
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Rumour I heard they collect petrol slips from the garages to claim expenses.
 
1/3 of our total tax revenue is derived from VAT, 1/3 from individual income tax and the remaining 1/3 from corporate tax. So even though we have large number of people not filing tax returns and paying personal income tax, these people (mainly poor) are still taxed via VAT, that is why VAT is necessary in SA.

Corporate tax is taking a big hit due to the recession and low consumer spending and we will definitely see a tax collection deficit. Large numbers of income tax payers have already emmigrated and more (which is quite likely judging from the current situation) in the next 3 - 10 years. The shyt looks closer to the fan.
 
Eh! said:
1/3 of our total tax revenue is derived from VAT, 1/3 from individual income tax and the remaining 1/3 from corporate tax. So even though we have large number of people not filing tax returns and paying personal income tax, these people (mainly poor) are still taxed via VAT, that is why VAT is necessary in SA.

Corporate tax is taking a big hit due to the recession and low consumer spending and we will definitely see a tax collection deficit. Large numbers of income tax payers have already emmigrated and more (which is quite likely judging from the current situation) in the next 3 - 10 years. The shyt looks closer to the fan.
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VAT might make up 1/3 of taxes but most is still generated by the income tax payers. Very low income people who dont pay income tax also have very little disposable income and so spend much less, thus contributing much less of the VAT total.
 
It's not out of 50 million people. There are minors in that figure. You need to first calculate the total adult population. Then subtract 4.3 million unemployed. Then subtract all those earning under R3700 per month. Then compare that figure to 5.5 million taxpayers.
 
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