SABC News - Gigaba cautions against weakening tax morality:Tuesday 12 September 2017

Gigaba cautions against weakening tax morality

Tuesday 12 September 2017 06:05

SABC

Minister Malusi Gigaba says there must be equity among tax payers.

Minister Malusi Gigaba says there must be equity among tax payers.(SABC)

Finance minister Malusi Gigaba has cautioned against a weakening tax morality saying some taxpayers tend to justify minimising their tax payments based on perceptions of government corruption.

The minister also emphasises that corporates and wealthy taxpayers are able to use expert practitioners to reduce their tax burden while those who can't afford them have limited scope to legally reduce their payments.

He says there must be equity among tax payers.

"We should not have a situation where individuals who can afford to pay for advisors or complicated structures end up paying less tax than those who cannot afford such services."

"The closing down of the use of interest free loans to trust to avoid donations, tax and estate duties is an example of the measures we need to take to ensure equity between individuals. Action must also be taken to ensure corporates pay their fair share," adds Gigaba.

Meanwhile, he has also warned that the rebounding economic growth that occurred in the second quarter is not sufficient to be sustained.

The economy exited a recession in the second quarter, growing by 2.5%.

Gigaba says drastic measures on the structure of the economy are needed to achieve sustainable growth.

"We simply have to take drastic measures and do better to get the economy growing faster, bigger, sustainably and more inclusive. We cannot afford to become complacent as a result of the GDP growth of 2.5% which has got us out of the recession, as much as it came as a welcome relief for all of us."
      
Click below to watch:

Share this page: Printer friendly version
 
SABC ©