The Gauteng government plans to introduce a provincial tax to increase its revenues, provincial finance minister Paul Mashatile said on Thursday.
”In line with the provisions of the Provincial Tax Regulations Process Act … we will this year table proposals to the legislature to introduce a new provincial tax,” Mashatile said as he tabled his budget in Johannesburg.
The nature and rate of the tax were not made clear.
He said the additional revenue raised will be used for socio-economic development, reducing poverty and unemployment.
”This is in line with the recommendations of the Finance and Fiscal Commission that provinces be encouraged to raise more [of their] own revenue,” he said.
Mashatile said the province has limited means to raise revenue, and mainly relies on money transferred from the national government.
”In order to achieve our provincial priorities and the growth and development strategy targets we have set for the province for 2014, it is clear that national transfers are insufficient for the socio-economic needs of the province,” he said.
The Democratic Alliance objected to the measure.
”The DA opposes increasing the tax burden on Gauteng residents.
”No provincial taxes should be imposed without a corresponding reduction in the national tax burden,” said DA spokesperson Brian Goodall.
”Residents of Gauteng have already seen a dramatic increase in rates and taxes at local government and additional fuel levies on fuel. Further taxes are not needed in our province,” he said.
The proposals will have to be approved by the minister of finance before they can be implemented in the next financial year, 2006/07. — Sapa