The podcast episode features Keith Engel discussing how taxation is affecting South Africa’s economy. It covers issues like increasing VAT and income tax, tax system complexity, and the effectiveness of government tax collection. Engel provides insights on necessary reforms to avert economic decline due to taxation.
In the latest episode of Money, Markets and Masterminds, hosted by Citywire South Africa, Keith Engel, CEO of the South African Institute of Taxation, discusses the pressing issue of how taxation is adversely affecting South Africa’s economy. The dialogue delves into critical subjects such as increasing value-added tax, income tax burdens, and the presence of numerous non-compliant taxpayers, prompting the question of whether the economy has hit a tax tipping point.
Engel examines the potential consequences of government tax policies, specifically assessing whether the country may be surpassing the peak of the Laffer Curve. He emphasizes how the complexity of the tax system is detrimental to both businesses and overall economic health. The episode raises concerns that continuous tax hikes could inflict more harm than benefit on the economy.
Further, Engel addresses crucial questions about governmental effectiveness in tax collection versus potential wastefulness. He highlights various tax loopholes, issues of compliance, and the dangers posed to businesses by excessive tax pressures. The conversation offers practical recommendations and bold insights necessary for reforming South Africa’s tax system before it reaches a point of no return.
In conclusion, the discussion with Keith Engel on the Money, Markets and Masterminds podcast reveals significant concerns regarding South Africa’s tax policies. The potential consequences of surpassing the Laffer Curve and the detrimental effects of tax complexity on businesses are alarming. Engel’s insights and proposed solutions are essential for reforming the tax system to ensure economic sustainability and growth.
Original Source: citywire.com
