Perceptions of informal traders towards taxation in Buffalo City Municipality
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Date
2018
Authors
Mungwana-Zake, Eva Nabukalu
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Abstract
The pressure on South Africa’s tax revenue (income tax in particular) has become evident in recent years. The Davis Tax Committee and National Treasury have echoed the urgency of broadening the tax base by minimizing revenue leakages and maximizing compliance to tax legislation. Compared to industrialized and developing countries, the informal sector in South Africa remains an unexplored source of tax revenue. This research investigates the tax perceptions of informal traders to understand their attitude towards tax compliance. Personal, semi-structured and in-depth interviews were conducted with ten informal traders in Buffalo City Municipality in the Eastern Cape Province. The respondents generally displayed a positive willingness to comply with tax; issues of fairness and legitimacy as they pertain to the government, tax authority and tax system were strong anchors of tax compliance. A slightly defiant attitude towards the elements of the tax system was observed. Therefore, an inclusive approach to remedy non-compliance is recommended to address such variations in compliance behaviour.
Description
A research report submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, in 50% fulfilment of the requirements for the degree: Masters of Management in Public Policy, August 2018
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Citation
Muwanga-Zake, Eva Nabukalu (2018) Perceptions of informal traders towards taxation in Buffalo City Municipality, University of the Witwatersrand, Johannesburg, <http://hdl.handle.net/10539/28597>