BIG BURDEN
Tax facts: living in poverty in SA and being taxed to death
South Africans pay some of the highest taxes in the world. Here’s how
Tax facts and implications: In 2015, SA’s ratio of total tax to GDP was 27.3% — which means the amount of tax paid by South Africans made up about a third of the total value of all the goods and services produced in the country that year. This is close to double the world average, of 15%. Even Sweden and the UK now have lower tax burdens than SA.• In terms of personal income tax, South Africans pay the 11th highest globally;• In terms of company tax, SA is the fifth highest, after Cuba, Cyprus, Hong Kong and Malaysia;• Indirect (consumption-based) taxes in 2015, such as value-added tax (VAT), excise and fuel levies, are 49th highest in the world, a ratio of 10.8% of the GDP;• It is estimated that the increase in VAT and implementation of consumption taxes such as the sugar tax will generate about 11.6% more in indirect taxes for the government. This might place SA in the top 30 countries with the highest consumption taxes in the world.
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