TAX on Lobola

posted on Monday, March 05, 2007 08:27 PM

To tax lobola, or not to tax: that is the question that Finance Minister Trevor Manuel does not want to touch with a barge pole. He told MPs in his budget speech on Wednesday that last year he received a suggestion he should make lobola, the traditional payment for a bride, tax deductible. ------ In response to the question and possibly to the Minister:

We at the lobola institute support the idea of tax on lobola, because, since we have introduced the concept of lobola contract in South Africa, we have witnessed cases where Families will deliberately ask large amount of money from the poor prospective husband knowing that there will be no form of evidence to support the amount in question. Hence, SARS (South African Revenue Services) cannot track or trace the amount received by the said family. Even the paying family will not be able to produce proof or evidence when declaring their taxes.

Some families have even opted to make use of the Lobola to launder money, as it is difficult for law enforcements or authorities to apply the FICA or FAIS ruling. This money can easily be deposited into the bank accounts in the name of LOBOLA.

Good honest families will make use of the LOBOLA CONTRACT for fairness and transparency to all the parties concerned.

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