Amendments to taxation laws yet another blow to country’s finances
21 November 2017
Planned amendments to the existing taxation and administration laws are most probably the last nails in the coffin for South Africa’s finances and they will only serve to facilitate the channelling of tax money to state capturers, says adv Anton Alberts, chairperson of the FF Plus.
Today, with the first reading debate on the Rates and Monetary Amounts and Amendment of Revenue Laws Bill, Taxation Laws Amendment Bill and Tax Administration Laws Amendment Bill, adv Alberts said that the amendments are representative of the system of state capture.
He said that the Minister of Finance needs to realise that he is currently staring into the eye of the perfect storm with regard to tax collection.
“The tax environment has changed drastically because tax morality and the business environment have changed. These are two factors that need to be taken into consideration and that send the following message to the government:
“Firstly, the business environment has become so negative that the economy is declining. The Laffer curve has already been reached and that means that higher taxes will merely result in fewer investments. This is also owing to the ANC’s poor fiscal and business polices as well as the plundering of resources.
“Last year, a South African businessman from the financial services sector, who had transferred his business interests to Britain, asked me why the ANC government seemingly hates the business sector. All he wanted to do was prosper in South Africa while creating job opportunities. I was unable to answer him. Maybe the Minister can explain why they view business as an enemy that must be destroyed.
“We can only assume that the government and the Revenue Service (SARS) have no regard for the middle class, the greatest contributor to the fiscus, because it seems like this is the class that they are aiming to destroy.
“The Revenue Service is currently waging a full-scale war on individual tax payers. The Revenue Service is also being used as an instrument to hit at political opponents. There is probably not one opposition MP that is not being audited at present.
“Secondly, the FF Plus is of the opinion that we have already reached a stage of a spontaneous and silent revolt against tax. Tax payers simply do not want to subsidise a captured state. The individual tax burden has passed the point where higher taxes lead to less tax collection.
“Even Canada has reached this point, despite the fact that their highest tax bracket is 33 percent in comparison to South Africa’s highest tax bracket, which is well on its way to 50 percent.
“The Minister needs to realise that these tax challenges were created by his very own party. And nothing will change until a new government is elected in 2019. In the interim, we will continue to expose and call to account those that have a share in it,” says adv Alberts.
Issued by Anton Alberts, FF Plus chairperson and parliamentary spokesperson: Finance, 21 November 2017