Lots of ink has been spilled detailing the ever increasing regulations as a result of the new tax regime of Value Added Tax (VAT) so the new government has a major task with streamlining the bureaucracy and excessive burden on business.
First of all, it appears that businesses pay and collect more taxes on behalf of the government – import taxes and VAT – than the government collects with all other taxes combined, so there is a fine line between taxing and regulating businesses out of business and the benefits that accrue to the public treasury.
Questions constantly surfacing among businesses include:
- Will the new Government remove Business License Tax as the old guard promised or will they make it more equitable – based on profit instead of gross income – if they leave it place?
- With a budget to be presented in a couple weeks will the new government look to cutting every departments expenditure by 5% – 10% for starters then hold the line on spending at lower levels for a couple years at least.
- Will trips with entourages by Ministers be rationalised? The symbolism that we are a major country over the substance of the reality, must be halted.
- Will the certificate of compliance nuisance be stopped? There are legitimate questions about its legality but there are numerous laws that cover methods of collecting taxes rather than adding more red tape to handcuff businesses that pay their taxes.
- Will the government’s accounting system be changed to accrual based accounting to make the system more efficient and beneficial?
The Minister of Finance will have a full plate considering these are just a few items that have become the bane of business that need resolving with the upcoming budget.
It does not help the government or the country by putting business out of business.