Minister Nene was addressing the African Tax Administration Forum (ATAF) conference on cross-border taxation in Africa.

The Minister said that for the African continent as a whole, the tax burden stood at 26% of Gross Domestic Product (GDP) in 2012 compared to 24.4% in 2011.

The Minister said that resource-related tax revenues typically distract governments from generating revenue from more politically demanding forms of taxation such as corporate income tax (CIT) on other industries, the personal income tax (PIT), value added tax (VAT) and excise taxes.

In addition, he said, this makes the continent’s resource revenue vulnerable to highly volatile international commodity prices and external shocks.

Available: http://www.sanews.gov.za/south-africa/tax-system-good-governance-tool-africa