2019 Budget to cause more woes for taxpayers

Finance, General News

South African Revenue Service (SARS) Commissioner Edward Kieswetter on Tuesday morning Briefed the media on this year’s filing season for personal income tax and related initiatives that will affect individual taxpayers at Linton House, Pretoria.

Kieswetter said that individual taxpayers are currently affected by tax compliance, rational choice and social influence, adding that If social influence or social interactions effects exist in tax behaviour their knowledge would be useful for policy objectives such as preventing tax fraud and adequately predicting the effects of tax regulations.

He said that high taxes hurt the poor directly and by raising prices under the current tax system, where even the poor would be taxed by social security, medicare, income, property and sales taxes would not be ideal.

The Commissioner said that the proposed fair tax, the poor people would only be taxed when they buy new nonessential items. He added that “higher taxes hurt the economy in a long-run primarily through the supply side. High marginal tax rates can discourage work saving , investment and innovation, while specific tax preferences can affect the allocation of economic resources”.

Kieswetter said the South African Revenue Service has improved online filing and filing at a SARS branch with Several exciting innovations for Tax Season 2019 to make it simpler and more convenient for taxpayers to file an income tax return. The convenient features comprise of a simpler navigation, the introduction of biometric authentication, a one-time pin as an added security feature and the ability to reset username and password. The features also extend to security questions, and a scanning and uploading of supporting documents.

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