2018/19 Budget Communication 2018_2019 BUDGET COMMUNICATION | Page 35

goods and services is critical to reduce the distortions in our
economy which have disadvantaged those involved in the
trade of goods – as well as our poorer citizens who tend to
spend a disproportionately higher share of their incomes on
goods over services.
The Business License regime in our country, with a
fee structure based on turnover, has long been cause for
concern
within
the
business
community
and
with
policymakers. The system is generally seen as inefficient,
inequitable and distortionary.
Previous recommendations
for a radical reform and even complete elimination of the fee
structure,
as
currently
configured,
have
inevitably
floundered in the face of fiscal pressures to maintain revenue
levels.
In total, our tax system generates revenues that are
projected to amount to some 16.1 per cent of GDP in
32