The podcast episode discusses South Africa’s tax policies and their negative impact on the economy, featuring insights from Keith Engel of the South African Institute of Taxation. It examines the implications of rising taxes, tax complexity, compliance issues, and the urgent need for reform to avert future economic challenges.
In the latest episode of “Money, Markets and Masterminds,” Citywire South Africa engages with Keith Engel, the CEO of the South African Institute of Taxation, to discuss the pressing issue of tax policies in the country. The discussion centers around the detrimental effects of increased value-added tax, escalating income tax burdens, and the prevalence of non-compliant taxpayers, raising the question of whether South Africa has reached a critical tax-tipping point.
The episode delves into the theoretical aspect of taxation, examining the possibility that South Africa could be exceeding the limits of the Laffer Curve, which implies diminishing returns from tax rates. Engel outlines how tax complexity is hampering business operations and stifling economic growth, raising concerns that relentless tax increases may yield more negative consequences than anticipated.
Furthermore, Engel assesses whether the South African government is successfully collecting taxes or merely expending resources in ineffective ways. He highlights prevailing tax loopholes and compliance issues, warning against the potential dangers of overly taxing businesses. Engel offers pragmatic solutions and insightful recommendations aimed at reforming the tax system in South Africa before it reaches a point of no return.
This episode of “Money, Markets and Masterminds” provides a thorough exploration of the current state of South Africa’s tax policies and their impact on the economy. Keith Engel emphasizes the need for reform to avoid adverse effects from tax increases and highlights the importance of compliance and closing loopholes to ensure a more effective tax system. Ultimately, the discourse suggests that without significant changes, the country may face severe economic repercussions.
Original Source: citywire.com
