An analysis of current tax revolt factors in South Africa

Abstract

Purpose The purpose of this study is to determine whether the factors once identified through literature and compared to the current situation in South Africa could predict the possibility of a tax revolt in South Africa. South Africans are experiencing frequent increases in taxes on already overburdened taxpayers, corruption, a lack of service delivery by the government and high unemployment rates. South Africa has seen an increased amount of protests relating to taxes, corruption and a lack of basic services. Design/methodology/approach In total, 12,000 Twitter feeds were collected from 14 February 2017 to 1 March 2017, the period before, during and after the South African National Budget Speech on 22 February 2017. The feeds were analysed using a thematic analysis. The emerging themes were identified as factors present in South Africa that may predict a possible tax revolt. Findings The factors found to be present in South Africa are: F1-failure of government to address the imminent collapse, F2-significant number of people with substantial debt, F3-onerous tax systems, including many different types of taxes, F4-high number of unemployed people, F5-education frustration, F6-increase in tax rates on citizens already overburdened by current taxes, F7-poor quality of governors, and performance of the country’s leaders and administration, including fraud and F8-wastefulness. Originality/value The value of the study is, first to contribute to the existing academic literature examining the factors that are likely to indicate a tax revolts. Second, the study uses an innovative data source, namely, tweets, to examine the climate for a possible tax revolt in South Africa.

Financial transparency, trust and willingness to pay in local governments of sub-Saharan Africa

“…There is evidence of a growing unwillingness of the citizens to pay taxes and fees (Puopiel and Chimsi, 2015; Konlan, 2015), perhaps as a protest against lack of transparency in how the resources are used. Prior studies have emphasized the role of governance effectiveness in shaping the tax paying behaviours of citizens, suggesting that an accountable and a transparent governance may positively influence citizens' willingness to honour their financial obligations to the local government (Ortega et al ., 2016; Du Preez and Stoman, 2019; Iraman et al ., 2021).…”

“…There is evidence of a growing unwillingness of the citizens to pay taxes and fees (Puopiel and Chimsi, 2015;Konlan, 2015), perhaps as a protest against lack of transparency in how the resources are used. Prior studies have emphasized the role of governance effectiveness in shaping the tax paying behaviours of citizens, suggesting that an accountable and a transparent governance may positively influence citizens' willingness to honour their financial obligations to the local government (Ortega et al, 2016;Du Preez and Stoman, 2019;Iraman et al, 2021). Porumbescu et al (2017) assert that transparency is capable of enhancing the citizens' intention to comply with public policy, especially in areas of policy dealing with routine tradeoffs relating to improvement of quality-of-life issues such as provision of quality services.…”

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“…Because of the unequal distribution of income and the progressive South African tax system, citizens have been facing recurrent increases in taxes on already overburdened taxpayers, corruption, a lack of service delivery by the government and high unemployment (Du Preez & Stoman 2019). South Africa might have one of the best tax legislations in the world, but if taxes do not create enough revenue to finance government expenditure, suitable policy adjustments need to be implemented, and to achieve the desired fiscal consolidation outcome, tax compliance and behavioural response to tax hikes are crucial aspects for policymaking.…”

Does the Discourse on the Increase of Value Added Tax Have any legitimacy? Utilitarian Point of View

“…Not only that, it turns out that the Government of Indonesia will also impose taxes on other services, such as; Education, as well as Nursing Homes and Orphanages (Napitupulu, 2021). As a result, there was a potential rebellion that resulted from some of the plans mentioned above (Du Preez & Stoman, 2020).…”