Economic growth An increase in the total amount of output, income and spending in the economy.

Economic rents The difference between the return made by a factor of production (capital or labour) and the return necessary to keep the factor in its current occupation. For example: a firm making excess profits is earning economic rent. True economic rents can be taxed without distorting production decisions.

Economically active population The part of the population that is of working age and is either employed or seeking work.

Effective tax rate Actual tax liability (or a reasonable estimate thereof) expressed as a percentage of a pre-tax income base rather than as a percentage of taxable income, i.e. tax rates that take into account not only the statutory or nominal tax rate, but also other aspects of the tax system (e.g. allowable deductions), which determine the tax liability.

e-Filing A secure electronic tax return and submission service offered by the South African Revenue Service. It eliminates the risks and hassles of manual tax returns. The service offers web-based capture of individual returns as well as facilities for the submission of multiple returns through back-end interfaces. There is also a facility to apply for tax directives, which can be obtained within 24 hours.

Emerging markets A name given by international investors to middle-income economies.

Equalisation Fund levy A dedicated fuel levy used to subsidise the local synthetic fuel industry. It is also used to smooth the impact of fluctuations in the international oil price (and exchange rate) on the domestic fuel price.

Equitable share The allocation of revenue to the national, provincial and local spheres of government as required by the Constitution. See also division of revenue.

Exchange control Rules that regulate the flow of currency out of South Africa, or restrict the amount of foreign assets held by South African individuals and companies.

Excise duties Taxes on the manufacture or sale of certain domestic or imported products. Excise duties are usually charged on products such as alcoholic beverages, tobacco and petroleum.

Extra-budgetary institutions Public entities not directly funded from the fiscus.