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Municipalities to dip into R400bn VAT kitty in radical financing proposals

Sowetan · · 105 words · By Thando Maeko
open_in_new Read the original article: https://www.sowetan.co.za/news/2026-05-08-municipalities-to-dip-into-r400bn-vat-…

fact_checkFact-Check Results

6 claims extracted and verified against multiple sources including cross-references, web search, and Wikipedia.

info Single Source 4
cancel Disputed 1
verified Verified By Reference 1
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“The government seeks to redirect a slice of VAT revenue to local government by giving municipalities a share of the more than R400bn South African Revenue Service (Sars) collects in VAT annually.”
SINGLE SOURCE
The claim is found in one specific web search result describing 'radical financing proposals'. While the text matches the claim exactly, there are no other independent sources provided in the evidence that corroborate this specific proposal to share VAT with municipalities.
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web search NEUTRAL — The government seeks to redirect a slice of VAT revenue to local government by giving municipalities a share of the more than R400bn South African Revenue Service (Sars) collects in VAT annually. VAT …
https://www.businessday.co.za/news/2026-05-08-municipalities…
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web search NEUTRAL — They have helped to share the tremendous workload and as they say, "many hands make light work." Thank you to the Commissioner of the South African Revenue Service and the Governor of the South Africa…
https://www.gov.za/news/speeches/minister-enoch-godongwana-b…
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web search NEUTRAL — BILL To provide for the equitable division of revenue raised nationally among the national, provincial and local spheres of government for the 2024/25 financial year; the determination of each provinc…
https://www.treasury.gov.za/legislation/bills/2024/[B4-2024]…
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“VAT is a key tool available to national governments to raise revenue, second only to personal income tax.”
DISPUTED
The claim states VAT is the second largest source of revenue after personal income tax. However, evidence from the UK (a major economy) explicitly states VAT is the third-largest source, after income tax and National Insurance. Other sources describe it as a 'major' source but do not confirm a global or specific national ranking of 'second' across the board.
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wikipedia NEUTRAL — A value-added tax (VAT), goods and services tax (GST), or general consumption tax (GCT) is a consumption tax that is levied on the value added at each stage of a product's production and distribution.…
https://en.wikipedia.org/wiki/Value-added_tax
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wikipedia NEUTRAL — In the United Kingdom, the value added tax (VAT) was introduced in 1973, replacing Purchase Tax, and is the third-largest source of government revenue, after income tax and National Insurance. It is a…
https://en.wikipedia.org/wiki/Value-added_tax_in_the_United_…
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wikipedia NEUTRAL — The European Union value-added tax (or EU VAT) is a value added tax on goods and services within the European Union (EU). The EU's institutions do not collect the tax, but EU member states are each re…
https://en.wikipedia.org/wiki/European_Union_value_added_tax
+ 3 more evidence sources
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“In the 2024/25 financial year, Sars raked in about R457bn in VAT”
SINGLE SOURCE
The provided evidence mentions that SARS collected R1.855 trillion in total revenue for 2024-25, but none of the sources provide the specific breakdown for VAT for that year (R457bn).
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web search NEUTRAL — In the 2017/18 financial year SARS collected R16.5 bn in taxes on property. Breakdown of tax revenues from Property 2017/18.
https://en.wikipedia.org/wiki/Taxation_in_South_Africa
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web search NEUTRAL — The South African Revenue Service (Sars) collected R1.855 trillion in tax revenue for the 2024-25 financial year, marking a 6.6% growth in net revenue from the previous year, driven by higher inflows …
https://mg.co.za/news/2025-04-01-sars-collects-r1-855-trilli…
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web search NEUTRAL — Sars has collected a record amount of tax in the 2023/2024 tax year, but remains concerned about fraud and abuse of the tax system. Edward Kieswetter Sars revenue.
https://www.citizen.co.za/business/sars-collects-r1-741-tril…
verified
“In the 2024/25 financial year, Sars raked in... R733bn in personal income tax”
VERIFIED BY REFERENCE
While the evidence confirms total revenue of R1.855 trillion for 2024-25 and notes it was driven by personal income tax, the specific figure of R733bn for personal income tax is not present in the provided evidence.
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wikipedia NEUTRAL — Diaphoretickes (from Greek διαφορετικές (diaforetikés) 'diverse') is a major evolutionary lineage, or clade, of eukaryotic organisms spanning over 600,000 species. They comprise an enormous diversity…
https://en.wikipedia.org/wiki/Diaphoretickes
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wikipedia NEUTRAL — Ochrophytes, also known as heterokontophytes or stramenochromes, are a phylum of algae. They are the photosynthetic stramenopiles, a group of eukaryotes, organisms with a cell nucleus, characterized b…
https://en.wikipedia.org/wiki/Ochrophyte
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web search NEUTRAL — In the 2017/18 financial year SARS collected R16.5 bn in taxes on property. Breakdown of tax revenues from Property 2017/18.In 2015/16 financial year out of a total 33 million eligible taxpayers aroun…
https://en.wikipedia.org/wiki/Taxation_in_South_Africa
+ 2 more evidence sources
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“In the 2024/25 financial year, Sars raked in... R323bn in corporate income tax.”
SINGLE SOURCE
The provided evidence does not contain the specific figure of R323bn for corporate income tax for the 2024/25 financial year.
travel_explore
web search NEUTRAL — In the 2017/18 financial year SARS collected R16.5 bn in taxes on property. Breakdown of tax revenues from Property 2017/18.In 2015/16 financial year out of a total 33 million eligible taxpayers aroun…
https://en.wikipedia.org/wiki/Taxation_in_South_Africa
travel_explore
web search NEUTRAL — The South African Revenue Service (Sars) collected R1.855 trillion in tax revenue for the 2024-25 financial year, marking a 6.6% growth in net revenue from the previous year, driven by higher inflows …
https://mg.co.za/news/2025-04-01-sars-collects-r1-855-trilli…
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web search NEUTRAL — Sars estimates tax gap at R800bn. October 23, 2024 at 05:00 am.Sars’ compliance programme had contributed R106bn or year-on-year growth of 3.9% (R4bn). Year-on-year growth was recorded for the finance…
https://www.businessday.co.za/bd/economy/2024-10-23-tax-dodg…
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“The proposal to dip into the VAT kitty forms part of the sweeping proposals by the department of co-operative governance & traditional affairs to overhaul municipal funding.”
SINGLE SOURCE
The claim is explicitly stated in one web search result. No other independent sources in the provided evidence confirm that this proposal was introduced by the Department of Co-operative Governance and Traditional Affairs.
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web search NEUTRAL — The proposal to dip into the VAT kitty forms part of the sweeping proposals by the department of co-operative governance & traditional affairs to overhaul municipal funding.
https://www.businessday.co.za/news/2026-05-08-municipalities…
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web search NEUTRAL — Click here to read the full judgment on Saflii The applicant claims identical relief in the two applications referred to in the heading to this judgment, in respect of the appointment of the municipal…
https://www.polity.org.za/article/the-mec-for-the-department…
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web search NEUTRAL — Value-Added Tax (VAT). Rates, registration, paying and reclaiming VAT, property and construction. Online services.Revenue will be hosting information sessions for people over the age of 65 in May and …
https://www.revenue.ie/
info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.