SA Tax crisis

Johannesburg – South Africa has far fewer taxpayers than
the SA Revenue Service (Sars) professes there to be, trade
union Solidarity said on Sunday.
“According to Sars there are 13.7 million taxpayers in the
2012/13 tax year,” Solidarity Research Institute (SRI) senior
economics researcher Paul Joubert said in a statement.
“Actually only 3.3m taxpayers pay 99 percent of all income
tax, while only 2.3m pay 93 percent and 1.5m are
responsible for 84
percent of income tax,” he said.
Joubert said there was a much larger imbalance between
the number of people paying tax and the total population
than was implied by Sars.
He said it was important to bear in mind that the people
who paid income tax were also, to a large extent,
responsible for paying other types of tax such as VAT,
company tax, import tariffs and fuel levies.
Although 10.3m people were registered for income tax in
the 2011/12 tax year, only around 4.8m were required to
submit tax returns.
Joubert said 0.2m could immediately be subtracted from
the 4.8m because they had no taxable income.
“Moreover, there were around 1.3m people who
contributed only one percent of the total amount of income
tax for the year.”
An approximate 3.3m taxpayers then remained, who were
responsible for paying approximately 99 percent of all
income tax, he said.
The contribution to income tax of the next million taxpayers
was only 5.9 percent.
“When this group of a million people is removed from the
total, only 2.3m taxpayers remain, who were responsible
for paying approximately 93 percent of all income tax.
“When this group of 2.3m taxpayers is reduced one last
time, by excluding those who earned R150 000 to R200 000,
only 1.5m taxpayers, responsible for paying around 84
percent of all income tax, remain,” Joubert said. – Sapa


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