The South African tax base is extremely small (estimated at 13% of the overall population) and a situation of over taxation has now been reached. This has the impact of tax flight and a reverse effect in collection rates.
Throughout 2018 and into 2019, OUTA would like to see Government end corruption, stop maladministration and improve efficiencies that no increases in Personal or VAT Taxation levels will be required. The increase in company taxes should be possible through the improvement in business performance.
WHY CHALLENGE THE TAX INCREASES?
OUTA is concerned with Government’s insistence on annual tax hikes that produce little benefit to the public. These tax increases, on the backdrop of state capture, rampant corruption and maladministration has infuriated taxpayers. OUTA believes that the public sector is bloated, inefficient and fraught with wasteful expenditure and unnecessary lost revenue.
HOW IS OUTA GOING ABOUT THIS?
OUTA is engaging with government and putting pressure on public servants to find the necessary funds through improved efficiencies, along with the significant reduction in maladministration and corruption.
For more detail on OUTAs approach and message to Government, please see OUTAs 2018/19 Submissions to Government on the 2018/2019 Tax Budget presentation.