Legalising prostitution means more for tax coffers

Fin24 user Tess Thom says money is the only reason that will move the government to legalise prostitution.

Participating in the big labour debate, she writes: "Bottom line the ONLY reason government would legalise prostitution and for that matter 'taxi drivers' - both of which do not pay taxes - is to be able to tax these industries.

"Not for ANY OTHER REASON! Maybe this would be a good thing as there is a VERY SMALL minority of taxpayers carrying the burden of paying tax in this country at the moment."

Terry Bell responds:

Yes, Tess, the potential for additional tax revenue is a very powerful reason for governments to take the legalisation route. Especially when the tax base - as in South Africa - is small.

But while I am aware that there are a number of unregistered taxis operating in various areas, they are illegal. And the registered variety are subject to tax as well as registration fees. 

- Fin24

* Add your voice or just drop Terry a labour question. Follow Terry on twitter @telbelsa.

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