Africa-Press – South-Africa. Efficient Group chief economist Dawie Roodt said there is widespread unhappiness and resistance to paying taxes in South Africa, and tax boycotts are already underway.
Roodt made these comments during a discussion about land reform and the government’s duties in South Africa on the Praag podcast.
He stated that the new Expropriation Act, which grants the state the power to seize people’s property without compensation, is an example of government overreach.
“The term expropriation is just another term for theft. This is what the state does when it takes people’s property,” he said.
He explained that the state’s primary role is to protect its citizens and their property, ensuring that they are always safe.
When the state fails to perform this duty, it breaches its social contract with its citizens, which can lead to a decline in tax payments.
“When the state starts threatening to steal my property, I no longer have a duty to pay taxes to the government,” he argued.
The South African government is also known for wasting taxpayers’ money through corruption, mismanagement, and a bloated and inefficient workforce.
These issues have led many South Africans to resent paying taxes, as they do not see their money being spent wisely. Consequently, tax boycotts have begun to take place.
He said a good example of a tax boycott is the failed e-toll system, where South Africans refused to pay for the system, which was seen as corrupt.
Roodt, who is also a wealth manager, said when South Africans visit him to discuss their financial affairs, they have two requests.
They want to move their money offshore.
They don’t want to pay tax.
He said this is in stark contrast to countries like Australia and New Zealand, where most citizens are proud to pay tax.
“They are not averse to paying taxes because they know their money is spent efficiently. However, in South Africa, the money is wasted,” he said.
Roodt added that the tax system in South Africa is flawed and should be reviewed to serve the country and its people better.
He said people pay too much tax, and the resistance to this tax burden is growing, leading to many forms of tax boycotts.
He cautioned against a full tax revolt, where people would stop paying taxes altogether, as it is nearly impossible to convince them to start paying taxes again.
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