South Africa should focus on expanding the economy, creating more jobs and improving tax enforcement rather than relying on large new tax increases, according to the South African Institute of Taxation (SAIT).
SAIT chief executive Professor Keith Engel said stronger compliance and a broader tax base would give government a more sustainable route to raising revenue. He said the South African Revenue Service is increasingly using digital systems, third-party information and targeted enforcement to identify undisclosed wealth and improve collections.
The comments come ahead of the Tax Indaba in Sandton from 14 to 16 September, where tax policy, compliance and the pressure on public finances are expected to be central themes.
Engel argued that job creation remains crucial because a stronger labour market would increase the number of taxpayers while supporting household incomes and economic activity.
Source: SABC News.
