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Commuters board a taxi in the early hours of the morning.
The Organisation Undoing Tax Abuse (Outa) has called for the taxation of the taxi industry as well as the informal sector.
This as the budget speech approaches and members in the GNU are still unable to agree on where to find the R58-billion shortfall.
Last month, GNU members fiercely opposed Finance Minister Enoch Godongwana’s alleged plan to impose a 2% VAT increase, which lead to the first ever postponement of the speech.
However, Outa has identified 11 areas that could generate significantly more revenue than the proposed VAT increase.
Outa CEO, Wayne Duvenage says, “Broaden the tax base. So, we’ve got a lot of informal industries and the taxi industry that is not within the tax base. If you just go and start doing that, start off slowly, we should be able to get R2 billion a year, build that up to about R9 billion per annum going forward. It’s not to punish the taxi industry, it’s to say you are formalized, you are businesses, you need to be brought into the net. There’s no reason why an industry like the taxi industry should not be taxed,” explains Duvenage.
Below is the full interview with Outa CEO, Wayne Duvenage:
