Chapter 13: Finance
(2) � 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.
(3) � 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.
(4) � 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.
[Date of commencement of s. 227: 1 January 1998]
Provincial taxes
228.
(1)
A provincial legislature may impose—
(a) � taxes, levies and duties other than income tax, value-added tax, general sales
tax, rates on property or customs duties; and
(b) flat-rate surcharges on any tax, levy or duty that is imposed by national
legislation, other than on corporate income tax, value-added tax, rates on
property or customs duties.
[Para. (b) substituted by s. 9 of the Constitution Seventh Amendment Act of 2001.]
(2) � The power of a provincial legislature to impose taxes, levies, duties and
surcharges—
(a) 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
(b) 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.
[Date of commencement of s. 228: 1 January 1998]
122