Local tax on business would be last straw

THE article “Cash-starved municipalities want tax on businesses” (March 19) had me choking on my breakfast.

The idea to allocate a certain percentage of an existing tax to ease municipal finances is feasible, but to levy a new tax on business would be disastrous.

With direct and indirect taxes already costing me between 60c and 70c of every rand earned, I would have to lay off significant numbers of workers if this were to happen.

The municipal area in which I operate collects less than 50% of services bills due, because of poor systems and no will or skills to improve the situation.

This does not include indigents, whom I agree need to be given a break.

So a better solution would be for the national government to get private specialised debt collectors to implement training programmes for municipalities, teaching them how to do the most basic of things in terms of collecting the funds due to them.

Then the problem will be resolved without threatening jobs, and businesses won’t be tempted to consider tax avoidance.

Very few of those businesses and individuals that don’t pay for services cannot afford to do so.

They simply don’t pay because they are not forced to do so, even though there are many ways open to the local municipalities to rectify the situation.

The philosophy of “If it moves, tax it” needs to stop before things stop moving. — Eastern Cape businessman, by e-mail