# You are going to pay for the corruption at Eskom, SAA, SABC

- Link: https://dearsouthafrica.co.za/2019/10/31/you-are-going-to-pay-for-the-corruption-at-eskom-saa-sabc/
- Published: 2019-10-31T16:07:21+02:00
- Author: dearSA

![](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2019/10/20191226/Screenshot-
2019-10-31T160435.452.png "Screenshot - 2019-10-31T160435.452")

South Africans should brace themselves for higher taxes next year as the impact 
of state capture, corruption, and mismanagement are starting to bite.

The National Treasury delivered its [**2019 medium-term budget policy statement**](https://businesstech.co.za/news/finance/350127/the-2019-medium-term-budget-speech-in-a-nutshell/)
today, revealing that revenue collection fell far short of estimates.

Compared with the 2019 Budget estimates, total revenue shortfall for 2019/20 will
amount to R52.5 billion.

This reflects a poor employment outlook, with job losses, lower wage settlements
and smaller bonuses, reducing personal income tax collection.

There was also reduced profitability in a difficult trading environment, resulting
in lower-than-expected corporate income tax collections.

Financial pressure on consumers resulted in weak household consumption which means
domestic VAT collection was not as high as expected.

### Tax increases planned

The Treasury said significant tax increases over the past several years leave only
moderate scope to boost tax revenue.

However, given the size of the revenue shortfall, [**additional tax measures are under consideration**](https://businesstech.co.za/news/banking/350137/south-africans-should-brace-for-higher-taxes/)
for next year.

Chris Axelson, chief director for economic tax analysis in the Treasury, said that
given the fiscal position South Africa finds itself in, all tax options need to 
be on the table.

“The 2019 Budget included R10 billion in tax increases for 2020/21. The tax policy
measures to raise this amount will be announced in the 2020 Budget,” the Treasury
said.

### Taxpayers already overburdened

While the government wants to collect more money through higher taxes, the inverse
may happen instead.

Efficient Group founder and chief economist [**Dawie Roodt said**](https://mybroadband.co.za/news/business/324617-how-to-destroy-a-country-the-south-african-story.html)
South African taxpayers are already overburdened.

This means that even when the government increases taxes further, they will not 
increase tax collection much.

It will also further frighten the existing taxpayers in the country, who are already
faced with the highest taxes in history.

The consequences of ever-increasing taxes and mismanagement from the government 
include a potential tax revolt and skilled individuals and companies leaving the
country.

The fact that South Africans are tired of paying for corruption and mismanagement
at state-owned enterprises (Eskom, SAA, and the SABC), municipalities, and state
departments only aggravates the situation.

[Article](https://mybroadband.co.za/news/business/325507-you-are-going-to-pay-for-the-corruption-at-eskom-saa-sabc.html)
by My Broadband