Answer to Question #233271 in Marketing for antonio

Question

Examine how government spending is financed, ensure you relate to the major source of taxation revenue for the South African government. Include sin tax in your discussion.

Answer 1

South African government generates its revenue from taxes majorly, and other non-tax generating sources. Taxes are the most contributor of government revenues to finance its revenue. South Africa taxes include; Personal income tax, Value added tax(VAT), Corporate tax, trade and tariffs taxes among others. Personal income tax (Pay as you earn) is the largest contributor to government tax revenue with 2019/2021 Financial contributing R552.9 billion. VAT is the second largest contributor of tax revenue contributing Rs360.5 billion with corporate tax coming third. Trade and tariffs is affected by the custom agrreements with SADC allowing free trade among its trading partners.