Seven fascinating findings from tax season 2023. Picture: File.

Here are indirect taxes affecting you and your business

HERE is a list of extra taxes you pay on everything you buy in South Africa. From VAT to customs duty , excise duty and much more.

by Bonolo Moloi

26-11-2023 05:00

in News

Seven fascinating findings from tax season 2023. Picture: File.

Financial services firm PwC reports a significant change in African nations’ tax policies, broadening indirect taxes to impact more citizens and businesses.

The report analyzes various taxes, including the well-known Value-Added Tax (VAT) and nuanced levies like the Health Promotion Levy, offering a detailed overview of the continent’s changing fiscal landscape.

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INDIRECT TAXES THAT YOU PAY

African governments are expanding indirect taxes, impacting more people and businesses, reports financial firm PwC. In South Africa, a 15% VAT applies.

PwC details various taxes like customs duty and excise duty on items such as fuel, tobacco, and alcohol. An environmental levy targets plastic, electricity, and emissions.

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The Carbon Tax Act imposes a rate of R159 per tonne of CO2 equivalent. Health Promotion Levy, or ‘sugar tax,’ aims to reduce sugary beverage consumption.

Transfer duty applies to property transfers, varying with the property value. The securities transfer tax is 0.25% on security transfers.

Employers with a payroll exceeding R500,000 pay a 1% skills development levy. Turnover tax is an option for businesses under R1 million in turnover.

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General fuel and Road Accident Fund levies apply to petrol and diesel sales. Air passenger departure tax varies based on destinations.

PwC’s report provides a comprehensive overview of the diverse tax landscape, impacting citizens and businesses across Africa.