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Soccer nets R1bn tax goal for SA

Aug 31 2010 11:05 Sake24 reporter

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Cape Town -  More than R1bn in additional tax was collected during the 2010 FIFA World Cup, Minister of Economic Development Ebrahim Patel told parliament.

He was responding to a question from ACDP leader Reverend Kenneth Meshoe.

During the tournament tourists spent about R8bn, boosting the gross domestic product (GDP) by 0.54%.

Patel said further estimates from the Union Bank of Switzerland (UBS) indicated that the investment in World Cup infrastructure, including stadiums and public transport, produced about 300 000 job opportunities.

The UBS estimates are higher than Grant Thornton's April projections.

The latter anticipated the creation of 280 000 jobs this year as a consequence of investments in the tournament.

It is estimated that tax collections in general could from now on add R1.5bn a year to the government fiscus as a result of the tournament stimulus.

Over the long term tax collections should grow by about 0.5%, based on previous tournament countries' tax collections, said Patel.

- Sake24.com

 
 
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