Friday, April 24, 2009

Pocketing huge profits from crime

We got mail! Received this today. I thought it interesting, something for you to ponder this weekend.


Question: "What is the influence of crime on the S.A. Govt?"

Answer: Crime generates millions and millions of Rand's for the SA Government

Here are the facts.

Example 1:

Take just one million home owners in Gauteng who pay for "armed crime reaction" (not crime prevention) where private security companies react AFTER the crime has taken place - no wonder they never make any arrests!

This service costs on average R250 per month. Therefore 1,000,000 x R240.00 x 12 months x 14% VAT, generates R403 million in tax revenue for the SA Govt!


Example 2:

A car thief steals a R500,000 car and receives between R10,000 and R30,000 for his deed. The car owner is paid out by insurance and then purchases another similar vehicle, on which he pays 14% VAT of approx R70,000 as a direct result of crime. Who profited the most? The thief or the SA Govt?

We must begin with a mechanism whereby the SA government is forced to reconsider this unconstitutional and immoral practice of profiting from crime!

All South Africans should demand that all payments related to protection of life and property should be VAT free and Tax deductible!

This principle should also apply to replacement of stolen property as well as estate duty. If a person dies as a result of crime we should also demand that estate duty not be paid. How much do you think the SA government has made out of estate duty from the murders of 3000 South African farmers?

The S.A. government likes to compare us to overseas. Well, overseas your safety and security is covered by your income tax and is tax deductible!

It is time that South Africans stood together and made the regime and public aware of this "income" from crime.

In the meantime crime is the goose that lays the golden egg.

Is it also not unreasonable to expect victims of violence and hijackings to pay their own medical costs? The government should pay for these expenses as well as family counselling for victims!

Come on South Africa, ask the right questions and demand the right answers!


2 Opinion(s):

Anonymous said...

"This service costs on average R250 per month. Therefore 1,000,000 x R240.00 x 12 months x 14% VAT, generates R403 million in tax revenue for the SA Govt!"

You are actually wrong. The government should not be receiving the 1,000,000 X R240 X 12 months in the first place as the services should be tax deductible. Hence the government is getting R2.8 BILLION a year it should not be getting.

Vanilla Ice said...

"Come on South Africa, ask the right questions and demand the right answers!"

Sigh, depends on who's asking. The electorate has spoken, a mandate has been granted and I doubt there will be any answers soon.