The Impact of Taxation on South Africa’s Economy: Insights from Keith Engel
In this episode, the podcast “Money, Markets and Masterminds” features Keith Engel, who discusses how taxes are adversely affecting South Africa’s economy. The dialogue covers issues like tax burdens, compliance failures, and the risk of excessive taxation stifling business growth. Engel provides insights on necessary reforms to the current tax system to avoid further economic deterioration.
The latest episode of “Money, Markets and Masterminds” addresses the pressing issue of taxation’s impact on South Africa’s economy. Featuring insights from Keith Engel, CEO of the South African Institute of Taxation, the discussion reveals that rising value-added tax and income tax burdens, alongside a significant number of non-compliant taxpayers, have led to concerns about the sustainability of the economic framework.
Engel and the hosts delve into whether South Africa has surpassed the peak of the Laffer Curve, which suggests that excessive tax rates can reduce overall tax revenues. They argue that tax complexity is suffocating businesses, thereby hindering economic growth, and caution that continuous tax increases could potentially result in detrimental effects rather than benefits.
Through critical analysis, the episode questions if the government is genuinely maximizing tax collection or simply incurring further waste. Engel highlights existing tax loopholes and compliance issues, stressing the dangers of overburdening businesses. The discussion proposes practical solutions and insights aimed at reforming South Africa’s tax system to mitigate risks before it is too late.
This podcast episode underscores the critical state of South Africa’s tax system, with rising taxes and compliance issues jeopardizing economic viability. The dialogue emphasizes the need for a reformed approach to tax policies that properly balances revenue collection without stifling business and economic growth. Immediate changes are necessary to prevent further decline in the economy and ensure sustainable fiscal health.
Original Source: citywire.com
