SA 'headed for tax revolt', says judge

06 November 2015 - 02:35 By ©BDlive 2015

South Africa faces a "tax revolt" if the government does not address corruption and spend taxpayers' money more wisely, Judge Dennis Davis said at the fourth annual international economic law update at the University of the Witwatersrand yesterday. Davis heads the Davis Tax Committee, which has been appointed to re-examine the country's tax system.Money spent on excessive wage increases to public servants, bailing out SAA and the construction of two new universities could have been used better elsewhere, he said."The greater the level of corruption, the less we will have tax integrity and the greater the possibility of a tax revolt," Davis warned.The government is spending more than it is receiving in tax revenue, which has caused a large budget deficit, forcing it to raise personal income taxes in the current fiscal year.South Africa should not have built two new universities but should instead have invested the money in a national bursary fund, which would have ensured that many deserving students received tertiary education "free of charge", Davis said.He also cautioned that now was not the time to implement a carbon tax, as companies would simply pass the costs on to consumers, particularly the poor. ..

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