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We take a look at the number of tax payers per province as well as the amount of personal income tax paid per province, and its no real surprise that Gauteng has the highest number of taxpayers and its the province that pays by far the most in personal income tax.
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Number of tax payers and amount of taxes paid per province
The bar chart below shows the number of taxpayers per province (left hand axis) and the Rand amount in taxes paid per province (right hand axis). And as the bar chart shows, Gauteng has by far the highest number of tax payers in South Africa and they pay by far the most in personal income tax in South Africa.
The summary below shows the percentage of total taxpayers per province:
When look at the summary of the percentage of total taxes paid per province we see that Gauteng contributes even more compared to the percentage of total tax payers. While Gauteng has 40.15% of total taxpayers they paid over 45% of total personal income tax collected. A sign that the average taxable income in Gauteng is higher than that of the other provinces. The summary below shows the percentage contribution each province makes to total personal income tax (PIT) collected per province in South Africa.
According to South African Revenue Service (SARS) there were 4.8 million taxpayers registered in the 2018 tax year. The worry is South Africa's population is 57.7 million. So 4.8 million people is paying personal income tax, which makes up the bulk of taxes collected each year, to deliver services to 57.7 million people. This is extremely skewed and the tax net, especially the personal income tax net needs to be broadened. The problem is the tax burden on those currently paying personal income tax is excessive as government is looking to milk those paying personal income tax for as much as possible in order to deliver services to as many as possible. This cannot continue for much longer. Either a tax revolt will take place in which those paying personal income tax stops paying taxes, or the emigrate to a country where their tax money is used more effect and efficiently and public services received for taxes paid are far greater.
The National Treasury and SARS needs to be very careful not to overtax those currently paying taxes, because of the current tax base starts a tax revolt or leave to avoid being over taxed, South Africa's fiscal policy and future is in very deep trouble.
- Gauteng: 40.15%
- Western Cape: 15.39%
- KwaZulu-Natal: 14.95%
- Eastern Cape: 7.85%
- Mpumalanga: 5.95%
- Limpopo: 4.82%
- Free State: 4.59%
- North West: 4.46%
- Northern Cape: 1.85%
When look at the summary of the percentage of total taxes paid per province we see that Gauteng contributes even more compared to the percentage of total tax payers. While Gauteng has 40.15% of total taxpayers they paid over 45% of total personal income tax collected. A sign that the average taxable income in Gauteng is higher than that of the other provinces. The summary below shows the percentage contribution each province makes to total personal income tax (PIT) collected per province in South Africa.
- Gauteng: 45.71%
- Western Cape: 15.03%
- KwaZulu-Natal: 14.02%
- Eastern Cape: 6.56%
- Mpumalanga: 5.48%
- Limpopo: 4.34%
- North West: 3.76%
- Free State: 3.65%
- Northern Cape: 1.46%
According to South African Revenue Service (SARS) there were 4.8 million taxpayers registered in the 2018 tax year. The worry is South Africa's population is 57.7 million. So 4.8 million people is paying personal income tax, which makes up the bulk of taxes collected each year, to deliver services to 57.7 million people. This is extremely skewed and the tax net, especially the personal income tax net needs to be broadened. The problem is the tax burden on those currently paying personal income tax is excessive as government is looking to milk those paying personal income tax for as much as possible in order to deliver services to as many as possible. This cannot continue for much longer. Either a tax revolt will take place in which those paying personal income tax stops paying taxes, or the emigrate to a country where their tax money is used more effect and efficiently and public services received for taxes paid are far greater.
The National Treasury and SARS needs to be very careful not to overtax those currently paying taxes, because of the current tax base starts a tax revolt or leave to avoid being over taxed, South Africa's fiscal policy and future is in very deep trouble.