The 32-member delegation of finance ministers and commissioners from across the provinces of India yesterday descended on KwaZulu-Natal province to meet with the KwaZulu-Natal MEC for Finance, Ina Cronje, who was representing the province to discuss the province’s tax system.
This visit, which took place at the Pietermaritzburg’s Victoria Country Club, was prompted by India’s search for best practice in their taxation system. Speaking during the bi-lateral meeting, Mr A.R. Rather, leader of the delegation, said India is currently introducing reforms in their tax system and they needed to research and consult widely in order to come up with the best taxation system for their country.
“The Empowered Committee of Finance Ministers from India is tasked to introduce state level taxes. Currently, the committee is engaged in discussing various taxation procedures. We have come to KwaZulu-Natal to learn from some of its taxation system. KwaZulu-Natal is one of the three provinces we have visited in South Africa this year. We have been to Gauteng, Limpopo, but we have also toured Germany and Canada in search of best practice,” he said.
He said their reason to choose KwaZulu-Natal is because of a special relationship that exists between this province and India through Mahatma Ghandi.
“We have interacted with South Africa’s National Minister of Finance, Pravin Gordhan and his senior management team and we are now meeting with KwaZulu-Natal MEC for Finance and her top management to engage in this country’s taxation system. We have gathered useful information and we now have rich experience which we take back to India with us to work on our tax reform system,” said Rather.
Cronje said the discussion with the Indian delegation has further strengthened ties between KwaZulu-Natal and the different provinces of India.
“They had come to discuss with us how our systems work, what comes from National Treasury and specifically how our provincial tax system works. It was an exchange of ideas and we hope they have benefitted from it,” said Cronje.
Addressing the delegation, the head of Provincial Treasury, Simiso Magagula said the province of KwaZulu-Natal does not really have a robust tax base.
“It is the National Treasury and municipalities that have strong tax base systems of different kinds. The province has motor-vehicle licences, hospital fees, casino licence fees, to mention but a few,” he said.
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