MTEF And Taxes Flashcards
1
Q
What is the MTEF
A
Improves transparency and accountability in budgeting process - stipulates which gov department is responsible for achieving specific outcomes and how much money is available to achieve this
2
Q
What does the MTEF stand for
A
Midterm expenditure framework
3
Q
What are direct taxes
A
Direct taxes are paid by whom the tax is levied
4
Q
What are the two types of direct taxes
A
Personal income tax( PAYE )
- people who are in salary and wages paid this tax
- tax is deducted from the salary
- Pay as you earn
Indirect taxes
- VAT 15% most goods and services except essentials like milk, bread, fruit, paraffin
- Fuel Levy tax on petrol (41%) diesel (43%)
- Excise duties to discourage the use of it like Tabasco and alcohol
- custom duties ( Import tax) tax on all goods imported and make imported goods expensive and allow sa to compete against foreign business
