The podcast discusses how South Africa’s tax policies, including rising VAT and income taxes, negatively affect the economy. Keith Engel explores the implications of excessive taxation, tax complexity, and government inefficiencies, suggesting urgent reforms are needed to ensure economic stability.
The podcast episode titled “How Taxes Are Killing South Africa’s Economy” examines the country’s current taxation landscape, emphasizing the detrimental effects of high taxes on economic health. It features discussions on value-added tax increases, escalating income tax burdens, and the prevalence of non-compliant taxpayers, raising the question of whether South Africa has reached its tax-tipping point.
In this episode of Money, Markets and Masterminds, Keith Engel, CEO of the South African Institute of Taxation, articulates the adverse consequences of the government’s tax policies. The conversation delves into critical topics such as the possibility that the country has exceeded the optimal taxation point known as the Laffer Curve, the complexities of the tax system that hinder business growth, and the potential negative outcomes of continuous tax hikes.
The podcast further interrogates whether the government is adequately collecting taxes or merely contributing to inefficiencies. Engel highlights significant issues, including tax loopholes, compliance problems, and the risk associated with excessively taxing businesses. Practical solutions and insightful suggestions are offered to illuminate what modifications are necessary within South Africa’s tax system to avert economic decline.
The podcast effectively highlights the challenges facing South Africa’s economy due to its tax policies. With rising taxes and a complex tax system, the discussion calls for a thorough evaluation of current practices and suggests the need for meaningful reform. Engel’s insights serve as a crucial reminder of the importance of a balanced approach to taxation that supports, rather than stifles, economic growth.
Original Source: citywire.com
