TUESDAY, 11.30AM
The imminent of the latest report of the Katz commission into taxation is adding momentum to moves to enable provinces to levy their own taxes.
On Monday, the finance department said the Constitution requires legislation giving provinces power to tax personal income in addition to national taxation to be in place by early next year. Parliament’s budget council, which includes provincial representation, referred the issue to the Katz commission for an urgent report by month’s end.
However, financial and fiscal commission director Pundy Pillay said it is unlikely provincial taxation will be implemented in the next fiscal year because of the amount of work still to be completed.
Meanwhile, a Katz commission proposal that capital transfer tax be levied against trusts has been slated by SA Revenue Service CEO Trevor van Heerden as difficult to legislate and extremely complex to administer. Van Heerden pleaded with the parliamentary finance committee for a simpler system.