Page:Constitution of the Republic of South Africa 1996 from Government Gazette.djvu/102

100 No. 17678

Chapter 13—Finance

province in terms of section 214  (1), is a direct charge against that province’s Revenue Fund.

National sources of provincial and local government funding

Local government and each province —

is entitled to an equitable share of revenue raised nationally to enable it to provide basic services and perform the functions allocated to it; and may receive other allocations from national government revenue, either conditionally or unconditionally.

Additional revenue raised by provinces or municipalities may not be deducted from their share of revenue raised nationally, or from other allocations made to them out of national government revenue. Equally, there is no obligation on the national government to compensate provinces or municipalities that do not raise revenue commensurate with their fiscal capacity and tax base.

A province’s equitable share of revenue raised nationally must be transferred to the province promptly and without deduction, except when the transfer has been stopped in terms of section 216.

A province must provide for itself any resources that it requires, in terms of a provision of its provincial constitution, that are additional to its requirements envisaged in the Constitution.

Provincial taxes

A provincial legislature may impose —

taxes, levies and duties other than income tax, value-added tax, general sales tax, rates on property or customs duties; and flat-rate surcharges on the tax bases of any tax, levy or duty that is imposed by national legislation, other than the tax bases of corporate income tax, value-added tax, rates on property or custom duties.

The power of a provincial legislature to impose taxes, levies, duties and surcharges —

may not be exercised in a way that materially and unreasonably prejudices national economic policies, economic activities across provincial boundaries, or the national mobility of goods, services, capital or labour; and must be regulated in terms of an Act of Parliament, which may be enacted only after any recommendations of the Financial and Fiscal Commission have been considered.

Municipal fiscal powers and functions

Subject to subsections (2), (3) and (4), a municipality may impose —

rates on property and surcharges on fees for services provided by or on behalf of the municipality; and