Items filtered by date: Saturday, 06 July 2019

South Africa is one of the 10 most heavily taxed countries in the world (tax-to-GDP ratio), according to the a report by the International Monetary Fund (IMF).

Personal taxes have increased by 125% over the past decade. From 2017 to 2018, personal income tax accounted for R1.22-trillion in taxes collected by the national government and ranks as the country's number-one source of tax, accounting for 38% of all tax revenue. Just behind this is value added tax or VAT accounting for 24%, followed by company income tax, which accounts for 20%.

Because of these excessive figures, South Africa finds itself among the world's top-ten-highest-taxed countries in the world according to the International Monetary Fund (IMF).

"We're up there with the New Zealands and the Denmarks of the world. It's bad when you're not getting a return," Wayne Duvenage, chairperson of the Organisation Undoing Tax Abuse, told The Money Show.

"There is sufficient money, it all comes down to governance. Iinstead, we have cronyism, maladministration, corruption. If we can fix that, we'll have the best country in the world," he added.

Out of 115 countries with substantial tax data, South Africa ranks as the 8th-most-taxed country in the world, just behind New Zealand and Sweden. Namibia and Lesotho are even more highly taxed, however, featuring in second and third place just behind Denmark which took the top spot as the world's most taxed country.

The world average for tax according to the IMF was 15.4% in 2017 and South African residents pay more taxes than the United Kingdom (25.7%), Australia (22.2%), Brazil (12.7%) and the United States (11.9%).

 

Credit: CapeTownEtc.COM

Published in Economy
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