Pay as little tax as possible in South Africa

Renowned economist Dawie Roodt advised South Africans to do whatever they legally can to pay as little tax as possible.

This includes deducting everything they can and throwing the book at the South African Revenue Service (SARS).

Roodt shared his views on South Africa’s tax system at the 2026 Biznews Conference at the Champagne Sports Resort in the Drakensberg.

He explained that the South African Revenue Service has stopped working for taxpayers and is now working for the state.

“SARS is working for the politicians, and they have no respect for the taxpayer in South Africa anymore,” Roodt said.

He added that politicians think they are important and believe in taking money from South Africans through taxes and spending it on what they feel is good.

These taxes are paid by a small number of people and businesses. They are already overtaxed, which Roodt said is unsustainable.

“So, my advice to people is to avoid taxes. Do not break the law, but do whatever you can to pay as little tax as possible,” he said.

“Deduct every possible thing that you can deduct from your revenue. Make sure that you use your tax allowances.”

He added that if a taxpayer can throw the book at SARS or complain about things which were not done right, they should do it.

“Keep paying your taxes, but throw the book at SARS. SARS is being unreasonable. I know this,” he said.

“People come into my office and say they don’t want to pay taxes. You cannot expect such a small number of people to pay just about all the taxes.”

Tax revolt in South Africa

Roodt said that there is already a tax revolt in South Africa. “People are very aggressively pushing back. People immigrating is a form of tax revolt,” he said.

“People are also lying about their taxes or stopping working. I know people who have stopped working, saying, ‘It is not worth it. I can’t pay half of my salary to SARS.’”

Roodt explained that it is not just about the tax burden. It is the value that people get from the tax they pay.

He proposed an overhaul of South Africa’s tax regime to make it simpler. “It must be the least complicated tax regime in the world,” he said.

“You would still have personal income tax, but I would reduce it so it is the only income tax. No deductions and no rebates.”

“I would also propose a straightforward Value Added Tax (VAT) with no zero-rated items. If you want to address poverty, do it on the expenditure side of the budget.”

Roodt also proposed doing away with sin taxes, as it is not the government’s job to tell people what they should and should not do with their money.

Another thing he would change is exchange controls. He said the government should not dictate where South Africans put their after-tax money.

“I get an allowance of R2 million a year that I’m allowed to take out of the country without asking for permission,” he said.

“That’s my money. I’ve worked for that, and I’ve already been overtaxed on it. Now I have to ask permission from someone else to take the money out?”

“Technology is running away from these guys. Your job is to protect me and my stuff. Your job is not to make my life more difficult”