SOUTH Africa was overly reliant on only two taxes in the total tax mix, and as the tax system was already at full stretch, any further demands would distort economic activity and taxpayer behaviour.
This warning was sounded by Chris Evans‚ professor at the school of taxation and business law at the Australian School of Business.
Speaking at the annual Tax Indaba organised by the SA Institute for Tax Professionals‚ Evans said the scope for extracting more from tax in the South African system had been fully utilised.
He said the country had a very narrow tax base with a few taxpayers carrying the biggest burden.
Evans‚ also an extraordinary professor at the University of Pretoria‚ said the economy was heavily reliant on two taxes – personal and VAT.
"You cannot squeeze more blood from this stone‚" he said. – BDlive