Tax And Governance Essay

3904 words - 16 pages

Tax and Governance

Contents 1. Introduction - The motorist’s contribution to revenue 2. Fees and taxes paid by motorists 2.1 Revenue from motor vehicle license fees 2.2 Revenue from the fuel levy (fuel tax) 2.3 Revenue from Toll Fees 2.4 Revenue from Traffic fines 2.5 Revenue from CO2 tax 3. e-Toll (The recent Gauteng e-Toll topic) 3.1 Summary of the Gauteng Freeway Improvement Project (GFIP) 3.3.1 Quality of Life 3.3.2 Productivity 3.3.3 Development potential 3.3.4 Direct cost of travel 3.3.5 Environmental Impact Assessment (EIA) 3.3.6 Monitoring and Communication infrastructure improvement 3.3.7 Soccer World Cup 2010 influence on the GFIP 3.3.8 User-pay principle (e-Tolling) 3.3.9 ...view middle of the document...

This contributes to the gross annual income of the country. According to the Road Traffic Monitoring Corporation (RTMC), as of December 2010, there are 9 829 400 registered vehicles on the South Africa roads. This increase by 2,52 per cent from December 2009, with significant contributions of increase in the motorcar and bus categories and a notably decrease in the number of motorcycles. The highest percent of motor vehicles are in Gauteng and Western Cape Province respectively. Attached are the data table and graph illustrating the percentage distribution for reference, (Road Traffic Management Corporation, 2010)


2.2 Revenue from the fuel levy (fuel tax) The South African Petroleum Industry Association (SAPIA) is a body representing the collective interests of the of the South African petroleum industry. As stated by SAPIA, “The Association helps to address issues regarding refining, distribution and marketing of petroleum products. Also, promotes the industry’s environmental and socio-economic progress,” (SAPIA, 2007). “The fuel price in SA is based on a formula controlled by the Department of Energy,” says Avhapfani Tshifularo, Executive director of SAPIA, (SAPIA, 2007). According to Avhaphani, “Over 80 per cent of the price of fuel in SA is currently made up of government levies and taxes (29 per cent) and the Basic Fuel Price (BFP) 55 per cent. The BFP is based on the current prices quoted daily by the international markets. The remaining components, transportation costs, and industry margins make up the rest of the fuel price,” (SAPIA, 2007). Listed are all the levies and taxes included in the fuel price. Transportation and trading costs not included. 2.2.1 Equalization Fund "The Equalization fund levy is normally a fixed monetary levy, decided by the Minister of Minerals and Energy together with the Minister of Finance. The income from this levy is used mainly to equalize fuel prices. The levy is currently zero,” (APA, 2010). 2.2.2 Fuel Tax A tax levied on petrol and diesel fuels. The Minister of Finance decides the levy amount. 2.2.3 Customs Union Levy "A levy collected in terms of an agreement by the Southern African Customs Union,” (APA, 2010).


2.2.4 Road Accident Fund Levy "The Road Accident Fund levy is applicable on both petrol and diesel fuel. The Minister of Finance decides the amount of this levy. The income from this levy is used to compensate third party victims of motor vehicle accidents,” (APA, 2010). Road Accident Fund is approximately 80 cents/litre for both petrol and diesel fuels. 2.2.5 Demand Side Management Levy (DSML) "A DMSL is applicable on 95 unleaded petrol used in the inland area. This levy was incorporated into the price of 95 unleaded petrol in January 2006, when it was initially introduced into the market. Most vehicles in this market are not required to run on this type of petrol and the unnecessary use will result in "octane waste" with negative economic consequences. A DMSL is used to...

Other Papers Like Tax and Governance

Corporate Governance Essay

891 words - 4 pages CORPORATE GOVERNANCE A system of checks and balances between the Board, Management and Investors to produce an efficiently functioning the corporation, ideally geared to produce long term value. ISSUES IN CORPORATE GOVERNANCE * Asymmetry of power * Asymmetry of information * Interests of shareholders as residual owners * Role of owner management * Theory of separation of powers * Division of corporate pie among

Discuss How Observance of Good Corporate Governance and Avoidance of Corrupt Practices in an Institution Can Contribute to an Effective Organization

2049 words - 9 pages from JSTOR: 9. The King Report Sheet 1.2. Governance in an SME. Wei, S. (1997). “Why is Corruption so much more Taxing than Tax? Arbitrariness Kills. NBER Working Paper 6255. Cambridge, MA. 10. Wu Xu (2005) Corporate Governance and Corruption: A Cross-Country Analysis. National University of Singapore. 11.

Taxation and Sovereignity

2875 words - 12 pages Taxation is said to be one of the key governance tools of any state including the upholding of Zambians sovereignty. INTRODUCTION The most fundamental function of taxation is raising revenue to pay for governmental expenses and programs. "Taxes are necessary to raise revenue for public goods and infrastructure, as well as to provide other sorts of public services conducive to general welfare and economic growth." Tax revenues pay for the

Appraisal of Income Tax Collection and Administration in Nigeria

2467 words - 10 pages between the Lagos State Internal Revenue Service and the tax payers, tax payers were stratified into formal and informal sectors, with further classification along the lines of professions. Significantly, this exercise resulted in widening the tax base for Lagos State. Although payment of taxes to Lagos State Government through banks was introduced in late 1990’s, more control measures were put into the system during the democratic governance in late

A Legal and Ethical Examination of Corporate Tax Shelters

3369 words - 14 pages and a greater emphasis should be place on integrity and ethics for tax professionals and corporate governance. References Brittain-Catlin. (2005). Offshore: tax havens, secrecy, financial manipulation and the offshore economy [Interview Transcript]. Multinational Monitor 26(7/8), 47-51. Retrieved May 8th, 2015, from

Role of Media in Pakistan

3258 words - 14 pages . Moreover, tax system in Pakistan is also inefficient and unsatisfactory. Ratio of direct taxes is more than indirect taxes. Tax evasion(avoidance) is common. The rich are reluctant to pay tax, while the poor are paying tax even on the purchase of a match box. Accountability which is the key note of good governance is lacking in our country. No one in our country seems to consider himself accountable to law. Everyone whatever illegal he does

Tax Aggresiveness

889 words - 4 pages  caught engaging in these tactics this could lead to a  perception of management incompetence, “assuming that smart managers wouldn’t get caught”  (Bosch & Eckard, 1991). Desai and Dharmapala found in their study (2006), that only firms with  good corporate governance were able to actually increase firm value through tax aggressive  behavior.  With all of the negative effects that tax aggressive behavior is associated with it would  seem

Ethnic 2011 Index

3807 words - 16 pages SEMESTER 2 2011 CPA 118 ETHICS AND GOVERNANCE MODULE 1 ACCOUNTING AND SOCIETY 1.05 1.05 Part A: Ineraction with society Depictions of A/cting Depiction=描述 Defeating depictions defeat =挫败 Fig 1.1 new bean counter How to become professional? 3 aspects 1.06 Recruiting the best Beard(1994),Smith and Briggs(1999) and Simnik and Felton(2006) Friedman& Lyne(2001);Albrecht and Sack(2000);Coate et al.(2003) Jeacle: colourful accountant linked to

Mini Case Homework 1

1410 words - 6 pages business ones. The advantage is the ease with which it can be establish and the lack of regulation s governing it. Partnership: Business owned by two or more persons who are personal responsible for all its liabilities. The partners pay personal income tax on their share of these profits. Each partner has unlimited liabilities for all the business’s debts. Corporations: Business owned by stockholders who are not personally liable for the


314 words - 2 pages After secondary school, I need to decide what course to choose in order to further my study. Two of my cousins who are chartered accountant explained to me about accounting. From the explanation and sharing, I have interest in the course and I understand that accountancy is a profession. By having an ACCA accreditation, I can also have other career opportunities such as auditor, manager, tax agent and so on besides account. I believe I can have

Tax Evasion And Optimal Interest Rates. Switzerland: Study Center Gerzensee

4087 words - 17 pages municipal bodies are inadequate; infrastructures are in poor condition and services maintenance is neither enough nor would cover the new expansions. Inefficient governance of the municipal bodies is partly responsible for this. Holding tax plays an important role in own revenue of Pourashavas. About 35-45% revenue comes from holding tax. But in Bhairab Pourashava it contributes only 18-20%. Every year, its demands and collection are decreasing

Related Essays

Governance Mechanisms Infosys Essay

894 words - 4 pages approach is adopted in Infosys involving: * Central funding for the EA team required for enterprise wide architecture artifacts such as standards, processes and policies. * Remainder of activities (operating activities) funded through corporate tax and consulting fees. Defining a Governance Model for Portals Defining a governance model Fig.: The three phased approach of Infosys Fig.: A typical structure of portal governance

Tax Avoidance And Tax Evasion In Bangladesh

5263 words - 22 pages due to lack of knowledge ignorance. In extreme cases, tax evasion and avoidance even become inevitable when the tax system becomes too complex and/or contradictory to follow. Often, tax evasion and avoidance are by-products of deficient political, economic and social governance in a country. Especially in these circumstances – which are not untypical for many developing countries – any ‘exit strategy’ away from evasion and avoidance needs to be

Importance Of Sociology In The Society

651 words - 3 pages , amounting to about KShs 52 billion in 2009 and 2010. Nonetheless, given the comparative resilience of DRM in Kenya over the years, barring any unforeseen adverse political or socio-economic developments, Kenya‟s fiscal governance trajectory is fairly solid. REFFERENCE; TAX REFORM IN KENYA; POLICY AND ADMINISRATIVE ISSUES; by Nada O. Eissa and William Jack

E Governance: E Services From Citizens Perspective Essay

1155 words - 5 pages e-governance: e-Services from Citizens Perspective | Problem Statement Bangladesh is a small developing country with millions of people living under poverty. There is a scarcity of resources with high demand of services in the public sector. So, there is no alternative than to find more cost-effective ways to ensure these service deliveries. The digital (or e-) revolution holds the potential to increase the quality of citizen services and